CA2742752A1

CA2742752A1 - Computer-implemented methods of, and systems for, underwriting and administering a life insurance policy with an investment option

Info

Publication number: CA2742752A1
Application number: CA 2742752
Authority: CA
Inventors: Karl Joseph Simon; Marty Mommersteeg
Original assignee: Manufacturers Life Insurance Co
Current assignee: Manufacturers Life Insurance Co
Priority date: 2011-06-14
Filing date: 2011-06-14
Publication date: 2012-12-14

Abstract

The present invention relates to computer-implemented methods of, and computer systems for, underwriting and administering a life insurance policy with an investment option, and particularly a Canadian universal life type insurance policy.

Description

COMPUTER-IMPLEMENTED METHODS OF, AND SYSTEMS FOR, UNDERWRITING AND ADMINISTERING A LIFE INSURANCE POLICY WITH
AN INVESTMENT OPTION
CROSS-REFERENCE TO RELATED APPLICATIONS

[0001] None FIELD OF THE INVENTION

[0002] The present invention relates to computer-implemented methods of, and computer systems for, underwriting and administering a life insurance policy with an investment option, and particularly a Canadian universal life type insurance policy.

BACKGROUND OF THE INVENTION

[0003] Universal life insurance policies have existed in Canada for some time.

[0004] A Canadian universal life insurance policy is a life insurance policy that is generally intended to be in force for the entire lifetime of the named insured (as opposed to term life insurance, which is only in force for a limited period of time).
A universal life insurance policy typically has two components, an amount of insurance and an investment account. Upon the death of the named insured, assuming the terms and conditions of the policy have been complied with, the amount of insurance and the then current amount of the investment account will be paid to the beneficiary as a death benefit.

[0005] The death benefit is thus the monetary amount that will be paid to the beneficiary of the insurance policy upon the death of the named insured (assuming that all of the other policy terms and conditions have been complied with). The amount that the policyholder (who is typically, but not necessarily, the named insured) pays to the insurer for the amount of insurance is known as the cost of insurance. While the actual particular method by which the cost of insurance is calculated may vary between insurers, it is generally established by an insurer taking into account factors common in the MONTREAL:2608826.15 industry such as the age, sex, and health of the named insured. It is conventionally independent of the amount in the investment account.

[0006] There are many conventional ways in which the cost of insurance can be structured. It is commonly conventionally structured either as a guaranteed level cost of insurance for the life of the named insured, or as a yearly increasing cost of insurance.
Most commonly, for these types of policies, the cost of insurance is a set amount that is charged monthly against the investment account.

[0007] In Canadian universal life type insurance policies, the policyholder can make deposits into the investment account of the policy. These deposits and other moneys in the investment account are typically allocated into one or more investments options offered by the insurer with respect to the policy to provide a return on the investment while the money is sitting in the investment account. (The money in the investment account is commonly used to pay for the cost of insurance, and is commonly automatically deducted by the insurer from the investment account when the cost of insurance becomes due.) [0008] Over time the amount in the investment account can increase (if, for example, deposits are made into it by the policyholder or as a result of return on investments in the investment account) or the amount in the investment account can decrease (if, for example, the return on the investment(s) therein is negative or, so as to cover the cost of insurance for the policy paid from the investment account, or for cash withdrawals - if those option(s) are allowed by the insurer and are exercised by the policyholder at any point in time).

[0009] No matter what the source of the funds in the investment account, there will be no income taxable payable on the return on the investment(s) in the investment account under the Income Tax Act (Canada), provided that certain conditions set forth in the Act and the Regulations thereunder are met. Most importantly for present purposes, for a given death benefit of a policy, the total amount in the investment account cannot exceed a certain maximum amount in order for the investment account to have (or to maintain - as the case may be) its tax advantaged status. For this reason - as it would be MONTREAL:2608826.15 very undesirable for the policy to lose its tax advantaged status - typically an insurer's computer systems are programmed to automatically transfer amounts that would cause the investment account to exceed the maximum amount to maintain its tax advantaged status (if those amounts were to be kept in the investment account) into a distinct non-tax advantaged account separate from the policy (sometimes known as a "side account").
This transfer occurs no matter what the source of the funds.

[0010] Over time, if for whatever reason the amount in the investment account has reached the maximum amount for the policy to maintain its tax advantaged status, should the policyholder desire to have more room in the investment account for additional funds (i.e. to raise the maximum amount for the account to maintain the policy's tax advantaged status), under current legislation, he or she would need to increase the amount of insurance of the policy. While making such a request is generally possible (depending on the terms and conditions of the policy), additional underwriting will in all likelihood be necessary as some time will have passed since the policy was first taken out. This will likely mean that either (i) the cost of insurance will increase if the request is accepted by the insurer, or (ii) the increase in the amount of insurance will be refused by the insurer.

[0011] For some Canadians, tax-advantaged investment accounts within a universal life insurance policy can be a good tool for use in tax-efficient estate planning.
However, at present only a minority of policyholders utilize this feature of universal life insurance, perhaps because insurers offering such policies' methods and systems of underwriting and administrating such policies have not in the past been structured towards optimizing tax efficiency over the life of the policy. Thus, some Canadians may not have been taking advantage of this ancillary benefit of universal life type insurance policies to the fullest extent that they might have otherwise been capable so doing.

[0012] Improvement in this area is thus possible.
MONTREAL:2608826.15 SUMMARY OF THE INVENTION

[0013] It is an object of the present invention to ameliorate at least some of the inconveniences present in the prior art. In this respect, the present inventors have theorized that certain improvements in insurer's methods and systems of underwriting and administrating life insurance policies, particularly universal life type insurance policies, might improve such policies' use in estate planning. In particular, the present inventors have theorized that improvements that would allow for interested stakeholders (insurers, policyholders, financial advisors, etc.) to better understand and utilize the investment aspects of such insurance policies would be desirable.

[0014] The first of such improvements concerns the method by which the cost of insurance for such insurance policies is established. As was noted above, conventionally the cost of insurance in respect of such insurance policies is generally established as a function of the amount of insurance of the policy and the underwriting information concerning the named insured (or, more precisely the person who would become the named insured - referred to herein as the named insured merely for the sake of convenience). Thus, although for a policy having a particular amount of insurance, the maximum amount in the policy's investment account could be calculated, conventional methods of underwriting and administering such insurance policies do not readily lend themselves to allow an individual who has, for example, $75,000 to invest over time, to determine at the outset whether or not an insurance policy of this type would be a (relatively) good option for them, nor to compare such an insurance policy to investments available to that person. For example, conventionally, the comparison of the cost of insurance of a universal life insurance policy to the management expense ratio (also known the as the "MER") of a mutual fund is far from straightforward. The present inventors have theorized that allowing for such a comparison to be more easily made would allow for individuals to make more informed financial decisions.

[0015] Thus, in one aspect, some embodiments of the present invention provide a computer-implemented method of underwriting and administering a life insurance policy with an investment option, the policy issued by an issuer for a policyholder, the policy MON1REAL:2608826.15 having an amount of insurance and an investment account value, at least one of the amount of insurance and the investment account value being variable over at least a plurality of first periods of time from an initial amount of insurance and an initial investment account value at an initial one of the plurality of first periods of time to a then current amount of insurance and a then current investment account value at later ones of the plurality of first periods of time, the method comprising:
(I) prior to an issuance of the policy, (a) inputting, via at least one computer system, first data representative of at least the initial investment account value to be created by an initial deposit of the policyholder for the initial one of the plurality of first periods of time;
(b) storing the first data in at least one database in electronic communication with at least the at least one computer system;
(c) inputting, via the at least one computer system, second data representative of information required by the issuer to underwrite the policy, the second data including at least information related to the named insured's age, sex and health;
(d) storing the second data in the at least one database;
(e) calculating, via at least one computer processor in electronic communication with at least the at least one database, the initial amount of insurance of the policy at the issuance, the initial amount of insurance being at least a minimum amount of insurance required for the policy to qualify as a tax-exempt policy as defined in the Income Tax Act (Canada) for the initial one of the plurality of first periods of time based on the stored initial investment account value of the policy;
(t) storing, in the at least one database, third data at least representative of the calculated initial amount of insurance of the policy;
(g) calculating, via the at least one computer processor, a cost of insurance rate chargeable by the insurer to the policyholder in respect of the policy, the cost of insurance rate being based at least in part on information MONIREAL2608826.15 related to the named insured's age, sex and health stored in the second data;
(h) storing, in the at least one database, fourth data at least representative of the calculated cost of insurance rate for the policy; and (II) after the issuance of the policy, (i) calculating, via the at least one computer processor, for each one of a plurality of second periods of time, a cost of insurance to be charged for that one of the plurality of second periods of time, the cost of insurance being a function of at least the cost of insurance rate for the policy stored in the fourth data and the then current investment account value of the policy for that one of the plurality of second periods of time; and (j) storing, in the at least first database, fifth data representative of the calculated cost of insurance to be charged for that one of the plurality of second periods of time.

[0016] In this first aspect, the present invention attempts to solve some of what the present inventors have realized were (at least in some situations) drawbacks noted above with respect to the prior art. Thus, in this first aspect, at a minimum, the cost of an insurance policy is determined as function of a cost of insurance rate for the policy and the amount in the investment account associated with that policy. (Directly linking the cost of insurance with the amount in the policy's investment account, which has not heretofore been done.) In a broad sense, this allows a person to compare such an insurance policy's cost of insurance rate with, for example, the MER of a mutual fund;
allowing for a more direct comparison. (Of course, an insurance policy remains an insurance policy, and thus the cost insurance rate is still based (at least in part) on underwriting information concerning the named insured - discussed in further detail below - which is not the case with a mutual fund as an example; the MER of a mutual fund is not a function of the risks associated with any of the fund's unit holders.) [0017] Taking this broad understanding into account, in this first aspect, the present method of administering and underwriting an insurance policy of this type has MON1REAL:2608826.15 certain elements that are similar to conventional methods and certain elements that are different from conventional methods.

[0018] In particular, the present method is similar to conventional methods in that prior to the issuance of the policy, conventional information regarding the risks associated with the named insured necessary for the insurer to underwrite the policy is gathered. Such information, at a minimum, will include the named insured's age and sex and information related to the named insured's health; although typically, depending on the insurer, additional information will be gathered for use by underwriting.
This information is necessary to determine the cost of insurance rate for the policy.

[0019] The present method differs from conventional methods in that, rather than gathering the amount of insurance that the policyholder desires to have, information regarding, at a minimum, an initial deposit into the investment account associated with the policy that the policyholder wishes to make is gathered. It is foreseen that information regarding future deposits (beyond the initial deposit) could, and likely would, be gathered at the same time as well. As an example, the following information might be gathered: that the policyholder will make an initial deposit of $25,000, and plans to make an additional deposit of $25,000 on the first anniversary date of the policy, and plans to make an additional deposit of $25,000 on the second anniversary date of the policy.

[0020] From the deposit information that is gathered, at a minimum, the minimum amount of insurance required for the policy to qualify as a tax-exempt policy as defined in the Income Tax Act (Canada) for the initial one of the first periods of time (likely a year - see below) is calculated and stored. In some embodiments of this first aspect, this may be the minimum amount for the initial one of the first periods of time assuming only the initial deposit will be made during that period of time. In other embodiments of this first aspect, this may be other minimum amounts, such as, for example the minimum amount for the initial one of the first periods of timing assuming all of the future projected deposits are made in the initial one of the first period of time (notwithstanding the fact that the policyholder may have indicated that he or she will deposit them in subsequent ones of the first periods of time). For example, for a one-time initial deposit MONTREAL:2608826.15 of $25,000, for an average non-smoking male, the minimum initial amount of insurance of the policy would be $271,482.

[0021] Once this amount is calculated, in some embodiments of this first aspect, the initial amount of insurance for the policy will be the minimum amount of insurance required for the policy to qualify as a tax-exempt policy as defined in the Income Tax Act (Canada) for the initial one of the plurality of first periods of time. In other embodiments, the initial amount of insurance for the policy will be greater than the minimum amount of insurance required for the policy to qualify as a tax-exempt policy as defined in the Income Tax Act (Canada) for the initial one of the plurality of first periods of time. The latter may be the case where it is desired to allow some "room"
for growth in the investment in the initial one of the first periods of time. In such embodiments, then, the initial amount of insurance is the minimum amount of insurance required for the policy to qualify as a tax-exempt policy as defined in the Income Tax Act (Canada) for the initial one of the plurality of first periods of time, plus an amount in respect of a projection of growth in the investment account value to occur during the initial one of the plurality of first periods of time owing to return on investment. No matter what the case, it will be seen that in this respect, the present method "reverses" that of conventional methods, in that it is the deposits in the investment account that lead to the minimum amount of insurance required being calculated and not the amount of insurance dictating the maximum amount in the investment account.

[0022] Once (at a minimum) the necessary underwriting information is gathered and stored, a cost of insurance rate in dollars per dollar in the investment account is calculated. In some embodiments, the cost of insurance rate is based at least in part on information related to the named insured's age, sex and health including the stored second data In some embodiments, the cost of insurance rate is based solely on this information.

[0023] In some embodiments the cost of insurance rate for the policy will be a single cost of insurance rate that will not vary over the life of the policy, such that the cost of insurance rate is unchangeable over a life of the policy. In other embodiments MONTREAL:2608826.15 multiple cost of insurances rates will be calculated (typically before the issuance of the policy), such that the actual cost of insurance rate in effect at any particular one of the second periods of time may change over the life of the policy. (For example, over time depending the frequency and timing of deposits and withdraw into the policy's investment account.) (Both embodiments should be understood to be encompassed by the words "a cost of insurance rate" as used in the independent claims.) As an example, such a cost of insurance rate would be 0.000024% per business day.

[0024] Once the policy is issued, for each of the second periods of time (likely days - see below), the actual cost of insurance will be a function of the cost of insurance rate (for that period of time if the cost of insurance rate can change; or for the entire life of the policy if it can not) and the value of the investment account during that one of the second periods of time. In some embodiments, a calculation of the cost of insurance to be charged for each one of the plurality of second periods of time includes a component being the cost of insurance rate for the policy multiplied by the then current investment account value of the policy for that one of the plurality of second periods of time. (Such will be the case, for example, where the cost of insurance also includes a minor fixed administrative fee.) In some embodiments, the cost of insurance to be charged for each one of the plurality of second periods of time is the cost of insurance rate for the policy multiplied by the then current investment account value of the policy for that one of the plurality of second periods of time. In such cases, there is an additional benefit in that the cost of insurance to be charged for any particular one of the plurality of second periods of time will never exceed the then current investment account value of the policy for that one of the plurality of second periods of time. This means that the policy will never lapse for failure to have sufficient funds in the investment account to cover the cost of insurance - which can (and does) happen with conventional universal life type insurance accounts - when the cost of insurance is automatically being withdrawn from the investment account of the policy.

[0025] It can be seen then that in this first aspect, the present invention differs from conventional methods in that conventionally, at least in part from the underwriting information that would be gathered and in part from the amount of insurance, the cost of MONTREAL2608826.15 insurance for the policy would be calculated as a specific dollar amount to be periodically paid. In the present case, rather than prior to the policy's issuance is a specific dollar amount to be paid determined, only a cost of insurance rate(s) is determined prior to the policy's issuance and the actual cost of insurance will be calculated in the future based on the cost of insurance rate and the amount in the policy's investment account at that time in the future.

[0026] As was noted above, an additional benefit of calculating the cost of insurance in this manner is that the cost can be calculated in such a way that there will always be enough in the investment account to cover it, and the policy will never lapse for failure of sufficient funds to be present in the investment account. Thus, in some embodiments, in this first aspect, the method further comprises: (k) reducing, via the at least one computer processor, the then current investment account value of the policy for that one of the plurality of second periods of time by the cost of insurance to be charged for that one of the plurality of second periods of time stored in the fifth data. Further, in some embodiments, the method further comprises, after reducing the then current investment account value, (m) sending to at least one of a display device and a printer the then current investment account value.

[0027] Finally, as was noted above, in some embodiments, each one of the plurality of first periods of time is a year. (For present purposes a year is 365 days. A
leap year simply contains a day that is 48 hours long.) A year is generally the standard measure of time for most aspects of universal life insurance policies of this type, corresponds generally with other investments' measure of time in this respect.
There is, however, no requirement that the first period of time be a year. In most circumstances, any reasonable period of time would work (as long as all of the then applicable laws and regulations are complied with). Further, in some embodiments, each one of the plurality of second periods of time is a day. Generally, a day being the standard measure of time with respect to cost is useful, as again, it corresponds generally with investments' measure of time in this respect. There is, however, no requirement that the second period of time be a day. In most circumstances, any reasonable period of time would work (as long as all of the then applicable laws and regulations are complied with).

MONTREAL2608826.15 [0028] In another aspect, the present invention also comprises a computer system that has been appropriately configured and programmed to implement the method being the first aspect of the invention. Thus, some embodiments of the present invention also provide a computer system for underwriting and administering a life insurance policy with an investment option, the policy issued by an issuer for a policyholder, the policy having an amount of insurance and an investment account value, at least one of the amount of insurance and the investment account value being variable over at least a plurality of first periods of time from an initial amount of insurance and an initial investment account value at an initial one of the plurality of first periods of time to a then current amount of insurance and a then current investment account value at later ones of the plurality of first periods of time, the computer system comprising:
(a) a first component that prior to an issuance of the policy receives first data representative of at least the initial investment account value to be created by an initial deposit of the policyholder for the initial one of the plurality of first periods of time;
(b) a second component that causes storage of the first data in at least one database;
(c) a third component that prior to the issuance of the policy receives second data representative of information required by the issuer to underwrite the policy, the second data including at least information related to the named insured's age, sex and health;
(d) a fourth component that causes storage of the second data in the at least one database;
(e) a fifth component that causes a calculation, via at least one computer processor, of the initial amount of insurance of the policy at the issuance, the initial amount of insurance being at least a minimum amount of insurance required for the policy to qualify as a tax-exempt policy as defined in the Income Tax Act (Canada) for the initial one of the plurality of first periods of time based on the stored initial investment account value of the policy;

MONTREAL-.2608826.15 (1) a sixth component that causes storage, in the at least one database, of third data at least representative of the calculated initial amount of insurance of the policy;
(g) a seventh component that causes a calculation, via the at least one computer processor, of a cost of insurance rate chargeable by the insurer to the policyholder in respect of the policy, the cost of insurance rate being based at least in part on information related to the named insured's age, sex and health stored in the second data;
(h) a eighth component that causes storage, in the at least one database, of fourth data at least representative of the calculated cost of insurance rate for the policy; and (i) a ninth component that, after the issuance of the policy, causes a calculation, via the at least one computer processor, for each one of a plurality of second periods of time, a cost of insurance to be charged for that one of the plurality of second periods of time, the cost of insurance being a function of at least the cost of insurance rate for the policy stored in the fourth data and the then current investment account value of the policy for that one of the plurality of second periods of time; and (j) a tenth component that causes storage, in the at least first database, of fifth data representative of the calculated cost of insurance to be charged for that one of the plurality of second periods of time.

[0029] In some embodiments, a computer system of this aspect, further comprises an eleventh component that after the issuance of the policy causes a reduction, via the at least one computer processor, of the then current investment account value of the policy for that one of the plurality of second periods of time by the cost of insurance to be charged for that one of the plurality of second periods of time stored in the fifth data.

[0030] In some embodiments, a computer system of this aspect, further comprises a twelfth component that after the reduction of the then current investment account value causes the then current investment account value to be sent to at least one of a display device and a printer.

MONTREAL:2608826.15 [0031] The components of this aspect may be any appropriate computer hardware, software or combination thereof.

[0032] Turning to another feature of some embodiments of the present invention, the second of the improvements that the present inventors have theorized that would allow for interested stakeholders (insurers, policyholders, financial advisors, etc.) to better understand and utilize the investment aspects of such insurance policies concerns the method by which the amount of insurance for such insurance policies is established.

[0033] As was noted above, conventionally the amount of insurance for an insurance policy is established when the policy is taken out by the policyholder. Should the policyholder desire to increase the face value of the policy to add additional insurance, additional underwriting will be required (and the information necessary for that underwriting to take place will have to be collected). The insurer will then accept the increase (with the appropriate increase in the cost of insurance) or will refuse the increase.

[0034] The present inventors have realized that the above may not be optimal in all circumstances. In this respect, as was discussed above, there is a maximum amount that can be present in the policy's investment account under the Income Tax Act (Canada) for the policy to maintain its tax-advantaged status. The effect of this on such an insurance policy is best illustrated by example. Taking the previous example of the policyholder desiring to deposit $25,000 in the investment account of the policy when the policy is taken out, $25,000 on the first anniversary date of the policy and $25,000 on the second anniversary date of the policy; it can readily be seen that conventionally the policyholder will have two basic choices (or some combination thereof). Either (1) when the policy is issued the policy will have to have an amount of insurance sufficiently high to accommodate $75,000 in the investment account (assuming simply for the ease of illustration zero return on investment), or (2) in each of the first two years of the policy, the policyholder will have to request an increase in the amount of insurance of the policy.
Neither of these situations is optimal. In the first case, for the first two years the policyholder will carry more insurance than he or she needs with resect to amounts in the MONIREAL:2608826.15 investment account, thus increasing the cost of insurance and decreasing the return on investment. In the second case, the policyholder will be subjected to additional underwriting, with its attendant costs and risks, simply to increase the amount in the investment account. (And the policyholder must remember to actually request and have granted the increase in the amount of insurance in the first period prior to the first period in which he or she will need the increased room in the investment account.
Under current legislation, it is not possible to do this in the first period in which the increased room is desired.) The present inventors have theorized that improvements in the administration of universal life type insurance policies are possible in this respect.

[0035] Thus, in another aspect, some embodiments of the present invention provide a computer-implemented method of underwriting and administering a life insurance policy with an investment option, the policy issued by an issuer for a policyholder, the policy having an amount of insurance and an investment account value, at least one of the amount of insurance and the investment account value being variable over at least a plurality of first periods of time from an initial amount of insurance and an initial investment account value at an initial one of the plurality of first periods of time to a then current amount of insurance and a then current investment account value at later ones of the plurality of first periods of time, the method comprising:
(I) prior to an issuance of the policy, (a) inputting, via at least one computer system, first data representative of at least the initial investment account value to be created by an initial deposit of the policyholder for the initial one of the plurality of first periods of time;
(b) storing the first data in at least one database in electronic communication with at least the at least first computer system;
(c) inputting, via the at least one computer system, second data representative of information required by the issuer to underwrite the policy, the second data including at least information related to the named insured's age, sex and health;
(d) storing the second data in the at least one database;
MONTREAL:2608826.15 (e) calculating, via at least one computer processor in electronic communication with at least the at least one database, the initial amount of insurance of the policy at the issuance, the initial amount of insurance being at least a minimum amount of insurance required for the policy to qualify as a tax-exempt policy as defined in the Income Tax Act (Canada) for the initial one of the plurality of first periods of time based on the stored initial investment account value of the policy;
(f) storing, in the at least first database, third data at least representative of the calculated initial amount of insurance of the policy; and (g) calculating, via the at least one computer processor, a cost of insurance chargeable by the insurer to the policyholder in respect of the policy, the cost of insurance being based at least in part on the information related to the named insured's age, sex and health stored second data;
(h) storing, in the at least one database, fourth data at least representative of the cost of insurance for the policy;
(II) after the issuance of the policy, (i) for each one of at least a subset of successive ones of the plurality of first periods of time, calculating, via the at least one computer processor, an amount of insurance of the policy for an immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on a then current projection of any future deposits of the policyholder during the immediately following one of the plurality of first periods of time;
(j) storing, in the at least first database, fifth data representative of the calculated amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time; and MONTREAL:2608826.15 (k) before an end of that one of the at least a subset of successive ones of the plurality of first periods of time, altering, if necessary, via the at least one computer processor, the amount of insurance of the policy for the immediately following one of the plurality of first periods of time to be not less than the stored calculated amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time.

[0036] In this second aspect, the present invention again attempts to solve some of what the present inventors have realized were (at least in some situations) drawbacks noted above with respect to the methods of underwriting and administration of universal life type insurance policies. Thus, in this second aspect, broadly speaking, the amount of insurance of an insurance policy of this type will "automatically" be analyzed and altered (usually increased) if necessary in the first period immediately prior to the first period in which the alteration of the amount of insurance is projected to be needed to provide for sufficient room in the investment account to provide for increases in the amount in the investment account (be they for additional deposits, return on investment, or otherwise) to maintain the policy's tax-advantaged status over time, while at the same time attempting to reduce the amount of "over-insurance" that the policyholder must carry (at least as compared with conventional methods of administering and underwriting insurance policies of this type). This analysis and alteration may be repeated for successive first periods in order to, for example, increase the amount of insurance in a stepwise fashion on a first period basis.

[0037] Taking this broad understanding into account, in this second aspect, there are many in which such a method of administering and underwriting an insurance policy may be carried out.

[0038] One possible variation is in which first periods of the insurance's policy's life will such an automatic analysis and alteration if necessary take place.
In this respect, MONTREAL2608826.15 there are several options (the following list is intended to be exemplary only, and not limiting):
= The first periods in which such analysis (and alterations if necessary) may take place are determined prior to issuance of the policy. Thus, in some embodiments, the method further comprises, prior to the issuance of the policy, inputting eighth data indicative of ones of the plurality of first periods of time that are in the subset.
= An analysis (and alteration if necessary) may be made in each of the first periods in which the policyholder has made a deposit. Thus, in some embodiments, each one of the plurality of first periods of time in which the policyholder makes an deposit is included in the subset.
= Only between 3 and 10 (inclusive) of the first periods of time may be included in the subset. Thus, in some embodiments, the subset includes solely from 3 to 10 of the first periods of time.
= The initial first period may always be included in the first periods in which such analyses (and alterations if necessary) take place. Thus, in some embodiments, the subset of successive ones of the plurality of first periods of time includes the initial one of the plurality of first periods of time.
= The initial first period may always be included in the first periods in which such analyses (and alterations if necessary) take place. In addition, any subsequent successive periods are included in which at then average net deposit per period is at least a predetermine amount (e.g. 75%) of the initial deposit. Thus, in some the subset of successive ones of the plurality of first periods of time includes:
(i) the initial one of the plurality of first periods of time;
(ii) each one of the plurality of first periods of time subsequent to the initial one of the plurality of first periods of time in which a then average net deposit per periods of time is at least a predetermined amount of the initial deposit.
= Each of the initial, second and third first periods may be always included in the first periods in which such analyses (and alterations if necessary) take place. In addition, any subsequent successive periods are included in which at then average net deposit per period is at least a predetermine amount (e.g. 75 %) of the initial MONTREAL2608826.15 deposit. Thus, in some embodiments, the subset of successive ones of the plurality of first periods of time includes:
(i) the initial one of the plurality of first periods of time;
(ii) the second one of the plurality of first periods of time;
(iii) the third one of the plurality of first periods of time; and (iv) each one the plurality of first periods of time subsequent to the third one of the plurality of first periods of time in which a then average net deposit per first period of time is at least a predetermined amount (e.g. 75%) of the initial deposit.

[0039] Another possible variation is based on what such automatic analyses (and alterations if necessary) take place. This respect, there are several options (the following list is intended to be exemplary only, and not limiting):
= The then current projection of any future deposits of the policyholder during the immediately following one of the plurality of first periods of time may be based at least in part on stored pre-issuance-projected future deposit data. Thus, in some embodiments, the method of this aspect, further comprises, prior to the issuance of the policy, inputting sixth data representative of pre-issuance-projected future deposits of the policyholder for at least some of the plurality of first periods of time; and wherein, after the issuance of the policy, for each one of the at least the subset of successive ones of the plurality of first periods of time, calculating, via the at least one computer processor, the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the then current projection of any future deposits of the policyholder during the immediately following one of the plurality of first periods of time, includes calculating, via the at least one computer processor, the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following MON7REAL2608826.15 _19-one of the plurality of first periods of time, based at least in part on the stored pre-issuance-projected future deposits.
= The then current projection of any future deposits of the policyholder during the immediately following one of the plurality of first periods of time may be based at least in part on the stored deposits of the policyholder in that one of the plurality of first periods of time. Thus, in some embodiments, the method of this aspect, further comprises, after the issuance of the policy, for each one of the at least the subset of successive ones of the plurality of first periods of time, inputting seventh data representative of deposits of the policyholder in that one of the plurality of first periods of time; and wherein, after the issuance of the policy, for each one of the at least the subset of successive ones of the plurality of first periods of time, calculating, via the at least one computer processor, the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the then current projection of any future deposits of the policyholder during the immediately following one of the plurality of first periods of time, includes calculating, via the at least one computer processor, the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the stored deposits of the policyholder in that one of the plurality of first periods of time.
= The then current projection of any future deposits of the policyholder during the immediately following one of the plurality of first periods of time may be based at least in part on the stored deposits of the policyholder in at least one period of the plurality of first periods of time prior to that one of the plurality of first periods of time. Thus, in some embodiments, after the issuance of the policy, for each one of the at least the subset of successive ones of the plurality of first periods of time, calculating, via the at least one computer processor, the amount of insurance of MON1REAL2608826.15 the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the then current projection of any deposits of the policyholder during the immediately following one of the plurality of first periods of time, includes calculating, via the at least the computer processor, the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the stored deposits of the policyholder in at least one period of the plurality of first periods of time prior to that one of the plurality of first periods of time.
= The then current projection of any future deposits of the policyholder during the immediately following one of the plurality of first periods of time may be based at least in part on the initial deposit of the policyholder. Thus, in some embodiments, after the issuance of the policy, for each one of the at least the subset of successive ones of the plurality of first periods of time, calculating, via the at least one computer processor, the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the then current projection of any deposits of the policyholder during the immediately following one of the plurality of first periods of time, includes calculating, via the at least the computer processor, the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the initial deposit of the policyholder.

[0040] Additionally, it is also preferred that any alterations take into account growth in the investment account value that will occur as a result of return on investment.
MONTREAL2608826.15 Thus, in some embodiments, calculating, via the at least one computer processor, the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the then current projection of any future deposits of the policyholder during the immediately following one of the plurality of first periods of time includes calculating, via the at least one computer processor, the amount of insurance of the policy for an immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on a then current projection of growth in the investment account value to occur during the immediately following one of the plurality of first periods of time owing to return on investment.

[0041] It should also be noted that it is foreseen that such analysis and alterations could result in a reduction in the amount of insurance (if, for example, the policyholder has net withdrawals from the investment account for a certain number of years.) Thus. in some embodiments, the altering, if necessary, via the at least one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time to be not less than the stored amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, is, for at least one of the subset of successive ones of the plurality of first periods of time, reducing the amount of insurance of the policy for the immediately following one of the plurality of first periods of time.

[0042] Where it is determined that an alteration to the amount of insurance for the subsequent first period is required, in most cases, such adjustment will be effected immediately prior to the end of that first period (i.e. the period in which it is being determined whether an alteration is warranted for the subsequent period), as this will help to keep the overall cost of insurance low. Thus, in some embodiments, the altering, if necessary, via the at least one computer processor, of the amount of insurance of the MON1REAL2608826.15 policy for the immediately following one of the plurality of first periods of time to be not less than the stored amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, occurs immediately prior to the end of that one of the at least the subset of successive ones of the plurality of first periods of time.

[0043] Where it is determined that an alteration to the amount of insurance for the subsequent first period is required, in most cases, such alteration will be effected without additional underwriting, to minimize the inconvenience to the policyholder and/or the named insured. Thus, in some embodiments, the altering, if necessary, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time to be not less than the stored amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time occurs without additional underwriting.

[0044] Where it is determined that an alteration to the amount of insurance for the subsequent first period is required, in some cases, such alteration will be effected without altering the cost of insurance (rate) chargeable in respect of the policy, to provide more certainty to the policyholder as to the cost of insurance. Thus, in some embodiments, the altering, if necessary, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time to be not less than the stored amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time occurs without altering the cost of insurance chargeable in respect of the policy.

[0045] In some embodiments, the method of the present aspect further comprises, after the issuance of the policy, for each one of the subset of successive ones of the plurality of first periods of time, if the amount of insurance of the policy for the immediately following one of the plurality of first periods of time is altered, (1) sending to at least one of a display device and a printer the altered amount of insurance.

MON7REAL:2608826.15 [0046] In some embodiments, the initial amount of insurance is the minimum amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the initial one of the plurality of first periods of time, plus an amount in respect of a projection of growth in the investment account value to occur during the initial one of the plurality of first periods of time owing to return on investment. This will help to keep the amount of "over-insurance" low.

[0047] As was discussed above in relation to the first aspect of the invention, in some embodiments, each of the plurality of first periods of time is a year, for the same reasons as discussed hereinabove.

[0048] In another aspect, the present invention also comprises a computer system that has been appropriately configured and programed to implement the method being the first aspect of the invention. Thus, some embodiments of the present invention also provide a computer system for underwriting and administering a life insurance policy with an investment option, the policy issued by an issuer for a policyholder, the policy having an amount of insurance and an investment account value, at least one of the amount of insurance and the investment account value being variable over at least a plurality of first periods of time from an initial amount of insurance and an initial investment account value at an initial one of the plurality of first periods of time to a then current amount of insurance and a then current investment account value at later ones of the plurality of first periods of time, the computer system comprising:
(a) a first component that prior to an issuance of the policy receives first data representative of at least the initial investment account value to be created by an initial deposit of the policyholder for the initial one of the plurality of first periods of time;
(b) a second component that causes storage of the first data in at least one database;
(c) a third component that prior to issuance of the policy receives second data representative of information required by the issuer to underwrite the policy, the second data including at least information related to the named insured's age, sex and health;

MONTREAL:2608826.15 (d) a fourth component that causes storage of the second data in the at least one database;
(e) a fifth component that causes a calculation, via at least one computer processor, of the initial amount of insurance of the policy at the issuance, the initial amount of insurance being at least a minimum amount of insurance required for the policy to qualify as a tax-exempt policy as defined in the Income Tax Act (Canada) for the initial one of the plurality of first periods of time based on the stored initial investment account value of the policy;
(f) a sixth component that causes storage, in the at least first database, of third data at least representative of the calculated initial amount of insurance of the policy; and (g) a seventh component that causes a calculation, via the at least one computer processor, of a cost of insurance chargeable by the insurer to the policyholder in respect of the policy, the cost of insurance being based at least in part on the information related to the named insured's age, sex and health stored second data;
(h) an eighth component that causes storage, in the at least one database, of fourth data at least representative of the calculated cost of insurance for the policy;
(i) a ninth component that, after the issuance of the policy, causes a calculation, via the at least one computer processor, for each one of at least a subset of successive ones of the plurality of first periods of time, calculating, via, an amount of insurance of the policy for an immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on a then current projection of any future deposits of the policyholder during the immediately following one of the plurality of first periods of time;

MONIREAL:2608826.15 a tenth component that causes storage, in the at least first database, of fifth data representative of the calculated amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time; and (k) an eleventh component that, before an end of that one of the at least a subset of successive ones of the plurality of first periods of time, causes an alteration, if necessary, via the at least one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time to be not less than the stored calculated amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time.

[0049] In some embodiments, a computer system of this aspect, further comprises a twelfth component that prior to the issuance of the policy receives sixth data representative of pre-issuance-projected future deposits of the policyholder for at least some of the plurality of first periods of time; and wherein, after the issuance of the policy, for each one of the at least the subset of successive ones of the plurality of first periods, of time, the calculation, via the at least one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the then current projection of any future deposits of the policyholder during the immediately following one of the plurality of first periods of time, includes a calculation, via the at least one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the stored pre-issuance-projected future deposits.

MONTREAL:2608826.15 [0050] In some embodiments, a computer system of this aspect, further comprises a thirteenth component that after the issuance of the policy, for each one of the at least the subset of successive ones of the plurality of first periods of time, receives seventh data representative of deposits of the policyholder in that one of the plurality of first periods of time; and wherein, after the issuance of the policy, for each one of the at least the subset of successive ones of the plurality of first periods of time, the calculation, via the at least one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the then current projection of any future deposits of the policyholder during the immediately following one of the plurality of first periods of time, includes a calculation, via the at least one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the stored deposits of the policyholder in that one of the plurality of first periods of time.

[0051] In some embodiments, a computer system of this aspect, further comprises a fourteenth component that prior to the issuance of the policy receives eighth data indicative of ones of the plurality of first periods of time that are in the subset.

[0052] In some embodiments, a computer system of this aspect, further comprises a fifteenth component that after the issuance of the policy, for each one of the subset of successive ones of the plurality of first periods of time, if the amount of insurance of the policy for the immediately following one of the plurality of first periods of time is altered, sends the altered amount of insurance to at least one of a display device and a printer.

[0053] The components of this aspect may be any appropriate computer hardware, software or combination thereof.

MON7REAL:2608826.15 [0054] In another aspect, the methods (and systems) of the present invention combine both aspects described hereinabove, as this is believed to be particularly beneficial in helping individuals understand and utilize universal life type insurance polices as investment vehicles.

[0055] Embodiments of the present invention each have at least one of the above-mentioned objects and/or aspects, but do not necessarily have all of them. It should be understood that some aspects of the present invention that have resulted from attempting to attain the above-mentioned objects may not satisfy these objects and/or may satisfy other objects not specifically recited herein.

[0056] Additional and/or alternative features, aspects, and advantages of embodiments of the present invention will become apparent from the following description, the accompanying drawings, and the appended claims.

BRIEF DESCRIPTION OF THE DRAWINGS & APPENDICES

[0057] For a better understanding of the present invention, as well as other aspects and further features thereof, reference is made to the following description which is to be used in conjunction with the accompanying drawings and appendices, where:

[0058] Appendix I is a sample contract of insurance in respect of the UltraVisionTM universal life insurance policy that is available in Canada from The Manufacturer's Life Insurance Company (hereinafter the "UltraVision Policy");

[0059] Appendix 2 is an informational publication entitled "Welcome to a simple way to invest. With Insurance" in respect of the UltraVision policy;

[0060] Appendix 3 is an informational publication "Ultra Vision Frequently Asked Questions" in respect of the UltraVision policy;

[0061] Appendix 4 is an informational publication entitled "A guide to your Ultra Vision Investment Accounts" in respect of the UltraVision policy;

MONTREAL2608826.15 [0062] Appendix 5 is an informational publication entitled "Advisor's Guide to Ultra Vision" regarding the UltraVision policy;

[0063] Appendix 6 is a sample client informational document use for sales illustrations and prepared for a prospective sample client in respect of an UltraVision policy to illustrate rates of return, amount of death benefit & comparison with other investments based on certain assumptions;

[0064] Appendix 7 is an additional sample client informational document use for sales illustrations and prepared for a prospective sample client in respect of an UltraVision policy to illustrate rates of return, amount of death benefit &
comparison with other investments based on certain assumptions;

[0065] Appendix 8 is a sample application for insurance for an UltraVision policy;

[0066] Appendix 9 is a sample annual statement for an UltraVision policy;

[0067] Appendix 10 is a sample Manulife InfoDirectTM web portal information page;

[0068] Figure 1 is a flow chart illustrating an embodiment of a method of the first aspect of the present invention (the cost of insurance rate) in the UltraVision Policy; and [0069] Figure 2 is a flow chart illustrating an embodiment of a method of the second aspect of the present invention (the automatic alteration of the amount of insurance) in the UltraVision Policy.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

[0070] The present invention is illustrated with reference to Appendices 1 to 7 by the UltraVisionTM universal life insurance policy, and the methods and systems used to underwrite and administer such a policy. The UltraVision policy is available in Canada from The Manufacture's Life Insurance Company of Toronto, Ontario, the applicant in respect of the present application.

MONTREAL2608826.15 Ultra Vision Policy General Description [0071] The UltraVision policy is a universal life insurance policy, and thus has an amount of insurance and an investment account. Both the amount of insurance and the amount in the investment account can vary over time. Initially, when the policy is applied for, various pieces of information are sought. This information includes information regarding the age, sex, and health of the named insured (see, for example, the printout of the sample application for insurance for an UltraVision policy in Appendix 8);
along with information regarding the initial deposit and future planned deposits of the policyholder into the investment account. (Other information - not directly relevant to the present invention is also sought - such as for example, the particular investment(s) into which funds deposited into the investment should be deposited into, but this is not detailed here for ease of reading.) [0072] From the information regarding the age, sex, and health of the named insured, the cost of insurance rate (sometimes referred to as the "spread rate") is determined using standard universal life insurance policy underwriting criteria. The calculated cost of insurance rate is referred to at the initial cost of insurance rate or initial spread rate of the policy. It is this cost of insurance rate that will generally be used (as is described below) to determine the cost of insurance for any particular day in which the policy is in force. However, as is described in more detail below, the UltraVision policy also offers the policyholder the chance to rather have applied a first discounted cost of insurance rate if their total net deposits into the investment account of the policy for the second policy year are equal to or greater than their total net deposits for the first policy year. The UltraVision policy also offers the policyholder the chance to rather have applied a second further discounted cost of insurance rate if they qualified for the first discounted cost of insurance rate and their total net deposits into the investment account for the policy for the third policy year are equal to or greater than their total net deposits for the first policy year.

[0073] From the information regarding the initial deposit, the amount of insurance for the first policy year is calculated. The initial amount of insurance will be the MONTREAL:2608826.15 minimum amount of insurance required under the Income Tax Act (Canada) plus an amount for the growth in the investment account value projected to occur during first policy year owing to return on investment, rounded to a near whole number for simplicity. There will be a side account (a non-tax advantaged account) associated with the policy. All moneys over and above the initial deposit (or if the initial deposit will be made in periodic payments throughout the year (as opposed to a lump sum), all amounts of the initial deposit not yet having become payable) will be placed into the side account and transferred into the policy's investment account at the appropriate time (to make the next scheduled deposit into the investment account). (The function of the side account is conventional and is generally the same through the part of the policy's lifetime during which deposits are accepted. It will thus not be discussed in further detail below.) [0074] For each business day during the course of the first policy year, at the end of each business day the actual cost of insurance for that day of the policy year is calculated. (February 28 & 29 are counted as a single day of 48 hours for this purpose.) The actual cost of insurance for that day is the initial cost of insurance rate times the then current value of the amounts actually in the deposit account at the end of that day. The actual cost of insurance is then subtracted from the amount in the investment account.

[0075] The administration of the policy continues in this manner until the business day prior to the first anniversary of the policy (e.g. the 3650' calendar day of the policy assuming it is a business day). At the end of that day, the standard daily administration described above will be carried out (as with every other business day). In addition an end of the first policy year administration will be carried out.
As part of the end of the first policy year administration, the actual total net deposit into the investment account for the first policy year is calculated. The actual total net deposit into the investment account is the sum of all actual deposits into the investment account that occurred during the relevant time period (in this case the first policy year) minus the sum of all of the withdrawals from the investment account that occurred during the relevant time period (in this case the first policy year).

MONTREAL:2608826.15 [0076] Using the actual total net deposit into the investment account for the first policy year and the actual value of the amount in the investment account at the end of first policy year (i.e. the actual value of the amount in the investment account at the end of that day - the day on which this calculation is being done), the amount of insurance for the second year of the policy is calculated. The amount of insurance for the second year of the policy will be the minimum amount of insurance required for the policy to maintain its tax-advantaged status during the second year of the policy, assuming that (1) there will be (a projected) growth in the investment account from the then current actual value of the investment account, and (2) the policyholder will make the same total net deposit during the second policy year as he or she made during the first policy year, the whole rounded to an near whole number for simplicity.

[0077] If the amount of insurance for the second policy year is not the same as the amount of insurance for the first policy year, the amount of insurance is then altered (most likely increased) on that day (i.e. altered on the last business day of the first year of the policy - the last business day before the second year of the policy begins), to be the required amount of insurance for the second policy year. In that way the policy should have enough room in its investment account for the policyholder to make the same net deposit in the second policy year as they made the first policy year, and for growth to occur in the investment account during the second policy year, all while attempting to keep the overall cost of insurance for the policy low.

[0078] For each business day during the course of the second policy year, as was the case with the first policy year, at the end of each business day the actual cost of insurance for that day of the policy year is calculated. The actual cost of insurance for that day is the then applicable cost of insurance rate times the then current value of the amounts actually in the deposit account at the end of that day. The then applicable cost of insurance rate is determined as follows: The actual total net deposit into the investment account to date for the policy to date is calculated and divided by the actual total net deposit into the investment account for the first policy year. If that ratio is 2 or greater, then the then applicable cost of insurance rate is the first discounted cost of MON7REAL:2608826.15 insurance rate. If that ratio is less than 2, then the then applicable cost of insurance rate is the initial cost of insurance rate.

[0079] The actual cost of insurance is then subtracted from the amount in the investment account.

[0080] The administration of the policy continues in this manner until the business day prior to the second anniversary of the policy. At the end of that day the standard daily administration described above will be carried out (as with every other business day). Using the actual total net deposit into the investment account for the first policy year and the actual value of the amount in the investment account at the end of second policy year (i.e. the actual value of the amount in the investment account at the end of that day - the day on which this calculation is being done), the amount of insurance for the third year of the policy is calculated. The amount of insurance for the third year of the policy will be the minimum amount of insurance required for the policy to maintain its tax-advantaged status during the third year of the policy, assuming that (1) there will be (a projected) growth in the investment account from the then current actual value of the investment account, and (2) the policyholder will make the same total net deposit during the third policy year as he or she made during the first policy year, the whole rounded to an near whole number for simplicity.

[0081] If the amount of insurance for the third policy year is not the same as the amount of insurance for the second policy year, the amount of insurance is then altered (most likely increased) on that day (i.e. altered on the last business day of the second year of the policy - the last business day before the third year of the policy begins), to be the required amount of insurance for the third policy year. In that way the policy should have enough room in its investment account for the policyholder to make the same net deposit in the third policy year as they made the first policy year, and for growth to occur in the investment account during the third policy year, all while attempting to keep the overall cost of insurance for the policy low.

[0082] For each business day during the course of the third policy year, as was the case with the previous policy years, at the end of each business day the actual cost of MOMREAL:2608826.15 insurance for that day of the policy year is calculated. The actual cost of insurance for that day is the then applicable cost of insurance rate times the then current value of the amounts actually in the deposit account at the end of that day. The then applicable cost of insurance rate is determined as follows: The actual total net deposit into the investment account to date for the policy to date is calculated and divided by the actual total net deposit into the investment account for the first policy year. If that ratio is 3 or greater, then the then applicable cost of insurance rate is the second discounted cost of insurance rate. If that ratio is 2 or greater but less than 3, then the then applicable cost of insurance rate is the first discounted cost of insurance rate. If that ratio is less than 2, then the then applicable cost of insurance rate is the initial cost of insurance rate.

[0083] The actual cost of insurance is then subtracted from the amount in the investment account.

[0084] The administration of the policy continues in this manner until the business day prior to the third anniversary of the policy. At the end of that day the standard daily administration described above will be carried out (as with every other business day). In addition an end of the third policy year administration will be carried out. Using the actual total net deposit into the investment account for the first policy year and the actual value of the amount in the investment account at the end of third policy year (i.e. the actual value of the amount in the investment account at the end of that day - the day on which this calculation is being done), the amount of insurance for the fourth year of the policy is calculated. The amount of insurance for the fourth year of the policy will be the minimum amount of insurance required for the policy to maintain its tax-advantaged status during the fourth year of the policy, assuming that (1) there will be (a projected) growth in the investment account from the then current actual value of the investment account, and (2) the policyholder will make the same total net deposit during the fourth policy year as he or she made during the first policy year, the whole rounded to an near whole number for simplicity.

[0085] If the amount of insurance for the fourth policy year is not the same as the amount of insurance for the third policy year, the amount of insurance is then altered MONTREAL:2608826.15 (most likely increased) on that day (i.e. altered on the last business day of the third year of the policy - the last business day before the fourth year of the policy begins), to be the required amount of insurance for the fourth year. In that way the policy should have enough room in its investment account for the policyholder to make the same net deposit in the fourth policy year as they made the first policy year, and for growth to occur in the investment account during the fourth policy year, all while attempting to keep the overall cost of insurance for the policy low.

[0086] For each business day during the course of the fourth policy year, as was the case with the previous policy years, at the end of each business day the actual cost of insurance for that day of the policy year is calculated. The actual cost of insurance for that day is the then applicable cost of insurance rate times the then current value of the amounts actually in the deposit account at the end of that day. The then applicable cost of insurance rate is determined as follows: The actual total net deposit into the investment account to date for the policy to date is calculated and divided by the actual total net deposit into the investment account for the first policy year. If that ratio is 3 or greater, then the then applicable cost of insurance rate is the second discounted cost of insurance rate. If that ratio is 2 or greater but less than 3, then the then applicable cost of insurance rate is the first discounted cost of insurance rate. If that ratio is less than 2, then the then applicable cost of insurance rate is the initial cost of insurance rate.

[0087] The actual cost of insurance is then subtracted from the amount in the investment account.

[0088] The administration of the policy continues in this manner until the last business day prior to the fourth anniversary of the policy. At the end of that day the standard daily administration described above will be carried out (as with every other day). In addition an end of the fourth policy year administration will be carried out. As part of the end of the fourth policy year administration, the actual total net deposit into the investment account for the fourth policy year (and each of the prior policy years if it has not already been done) is calculated. The actual total net deposit into the investment account in the fourth policy year is the sum of all actual deposits into the investment MON7REAL2608826.15 account that occurred during the fourth policy year minus the sum of all of the withdrawals from of the investment account that occurred during the fourth policy year.

[0089] The calculations with respect to the determination of the minimum amount of insurance for the fifth policy year will change depending on whether the then average actual total net deposit into the investment account per policy year (i.e. the average of the actual total net deposit for the investment account for the first policy year, the actual total net deposit for the investment account for the second policy year, the actual total net deposit for the third policy year, and the actual total net deposit for the fourth policy year) is at least 75 % of the actual total net deposit for the investment account for the first policy year.

[0090] If the then (at the end of the fourth policy year) average actual total net deposit in the investment account per policy year is at least 75 % of the actual total net deposit for the first policy year, then the calculation to determine if the minimum amount of insurance for the fifth policy year should be altered will be done using the actual total net deposit into the investment account for the first policy year and the actual value of the amount in the investment account at the end of fourth policy year (i.e. the actual value of the amount in the investment account at the end of that day - the day on which this calculation is being done). The amount of insurance for the fifth year of the policy in such cases will be the minimum amount of insurance required for the policy to maintain its tax-advantaged status during the fifth year of the policy, assuming that (1) there will be (a projected) growth in the investment account from the then current actual value of the investment account, and (2) the policyholder will make the same total net deposit during the fifth policy year as he or she made during the first policy year, the whole rounded to a near whole number for simplicity.

[0091] If, however, the then average (at the end of the fourth policy year) actual total net deposit in the investment account per policy year is less than 75 %
of the actual total net deposit for the first policy year, then the calculation to determine if the minimum amount of insurance for the fifth policy year should be altered will be done solely using the actual value of the amount in the investment account at the end of fourth policy year MON7REAL:2608826.15 (i.e. the actual value of the amount in the investment account at the end of that day - the day on which this calculation is being done). The amount of insurance for the fifth year of the policy in such cases will be the minimum amount of insurance required for the policy to maintain its tax-advantaged status during the fifth year of the policy, assuming that (1) there will be (a projected) growth in the investment account from the then current actual value of the investment account, but that (2) the policyholder will make no deposits during the fifth policy year, the whole rounded to a near whole number for simplicity.

[0092] If the amount of insurance for the fifth policy year is not the same as the amount of insurance for the fourth policy year, the amount of insurance is then altered (most likely increased if deposits are projected, and decreased if no deposits are projected - see above) on that day (i.e. altered on the last business day of the fourth year of the policy - the last business day before the fifth year of the policy begins), to be the required amount of insurance for the fifth year. In that way, the policy should, only if necessary because deposits are being projected in that policy year, have enough room in its investment account for the policyholder to make the same net deposit in the fifth policy year as they made the first policy year, and for growth to occur in the investment account during the fifth policy year (whether or not deposits are projected), all while attempting to keep the overall cost of insurance for the policy low.

[0093] For each business day during the course of the fifth policy year, as was the case with the previous policy years, at the end of each business day the actual cost of insurance for that day of the policy year is calculated. The actual cost of insurance for that day is the then applicable cost of insurance rate times the then current value of the amounts actually in the deposit account at the end of that day. The then applicable cost of insurance rate is determined as follows: The actual total net deposit into the investment account to date for the policy to date is calculated and divided by the actual total net deposit into the investment account for the first policy year. If that ratio is 3 or greater, then the then applicable cost of insurance rate is the second discounted cost of insurance rate. If that ratio is 2 or greater but less than 3, then the then applicable cost of insurance MONTREAL:2608826.15 rate is the first discounted cost of insurance rate. If that ratio is less than 2, then the then applicable cost of insurance rate is the initial cost of insurance rate.

[0094] The actual cost of insurance is then subtracted from the amount in the investment account.

[0095] The administration of the policy continues in this manner until the last business day prior to the fifth anniversary of the policy. At the end of that day the standard daily administration described above will be carried out (as with every other day). In addition an end of the fifth policy year administration will be carried out.

[0096] As was the case with the determinations in respect of the fifth policy year, the calculations with respect to the determination of the minimum amount of insurance for the sixth policy year will change depending on whether the then average actual total net deposit into the investment account per policy year (i.e. the average of the actual total net deposit for the investment account for the first policy year, the actual total net deposit for the investment account for the second policy year, the actual total net deposit for the third policy year, the actual total net deposit for the fourth policy year, and the actual total net deposit for the fifth policy year) is at least 75 % of the actual total net deposit for the investment account for the first policy year.

[0097] If the then (at the end of the fifth policy year) average actual total net deposit in the investment account per policy year is at least 75 % of the actual total net deposit for the first policy year, then the calculation to determine if the minimum amount of insurance for the sixth policy year should be altered will be done using the actual total net deposit into the investment account for the first policy year and the actual value of the amount in the investment account at the end of fifth policy year (i.e. the actual value of the amount in the investment account at the end of that day - the day on which this calculation is being done). The amount of insurance for the sixth year of the policy in such cases will be the minimum amount of insurance required for the policy to maintain its tax-advantaged status during the sixth year of the policy, assuming that (1) there will be (a projected) growth in the investment account from the then current actual value of the investment account, and (2) the policyholder will make the same total net deposit MON'REAL:2608826.15 during the sixth policy year as he or she made during the first policy year, the whole rounded to an near whole number for simplicity.

[0098] If, however, the then average (at the end of the fifth policy year) actual total net deposit in the investment account per policy year is less than 75 %
of the actual total net deposit for the first policy year, then the calculation to determine if the minimum amount of insurance for the sixth policy year should be altered will be done solely using the actual value of the amount in the investment account at the end of fifth policy year (i.e. the actual value of the amount in the investment account at the end of that day - the day on which this calculation is being done). The amount of insurance for the sixth year of the policy in such cases will be the minimum amount of insurance required for the policy to maintain its tax-advantaged status during the sixth year of the policy, assuming that (1) there will be (a projected) growth in the investment account from the then current actual value of the investment account, but that (2) the policyholder will make no deposits during the sixth policy year, the whole rounded to a near whole number for simplicity.

[0099] If the amount of insurance for the sixth policy year is not the same as the amount of insurance for the fifth policy year, the amount of insurance is then altered (most likely increased if deposits are projected, and decreased if no deposits are projected - see above) on that day (i.e. altered on the last business day of the fifth year of the policy - the last business day before the sixth year of the policy begins), to be the required amount of insurance for the sixth year. In that way, the policy should, only if necessary because deposits are being projected in that policy year, have enough room in its investment account for the policyholder to make the same net deposit in the sixth policy year as they made the first policy year, and for growth to occur in the investment account during the sixth policy year (whether or not deposits are projected), all while attempting to keep the overall cost of insurance for the policy low.

[00100] Further, on the last business day of the fifth policy year, the cost of insurance rate for the remainder of the life of the policy is set. The cost of insurance rate for the remainder of the life of the policy will be the cost of insurance rate applicable on MONTREAL2608826.15 that last business day of the fifth policy year. The cost of insurance rate applicable on the last business day of the fifth policy year is calculated as follows: The actual total net deposit into the investment account to date for the policy to date is calculated and divided by the actual total net deposit into the investment account for the first policy year. If that ratio is 3 or greater, then the then applicable cost of insurance rate is the second discounted cost of insurance rate. If that ratio is 2 or greater but less than 3, then the then applicable cost of insurance rate is the first discounted cost of insurance rate. If that ratio is less than 2, then the then applicable cost of insurance rate is the initial cost of insurance rate.

[00101] For each business day during the remainder of the life of the policy, the actual cost of insurance for that day is the cost of insurance rate for the remainder of the policy times the then current value of the amounts actually in the deposit account at the end of that day.

[00102] The actual cost of insurance is then subtracted from the amount in the investment account.

[00103] The administration of the seventh, eighth, ninth and tenth policy years is the same as of the sixth policy year, mutatis mutandis, with respect to the alteration in the amount of insurance for the subsequent policy year. In the eleventh and subsequent policy years, no analysis is done to determine whether the amount of insurance should be altered in view of projected deposits (as no deposits are allowed during those years).
The only analysis that will be done is to determine whether the amount of insurance should be altered in view of projected growth in the investment account. It thus likely that the amount of insurance will slowly be reduced year over year from the end of the eleventh policy year (unless it had started to be slowly reduced in an earlier policy year owing to the calculations described above - i.e. the policyholder had stopped making deposits earlier than in the eleventh policy year).

[00104] At the beginning of each policy year, the policy holder will be sent a statement in respect of the policy similar to the one shown in Appendix 9. At any time during the life of the policy, the policyholder's advisor can consult Manulife's InfoDirect MONTREAL2608826.15 system and obtain information on the policy. Sample information is shown in Appendix 10.

[00105] On the death of the named insured, assuming all of the terms and conditions of the policy have been complied with, the beneficiary is paid the death benefit of the policy which is the then current amount of insurance and the then current value of the amounts in the investment account.

[00106] It should be noted in the above description of the UltraVision policy, only details of the policy relevant to the present invention have been described.
Further information about the UltraVision policy is available in the documents included Appendices.

Description of a Preferred Computer System for Underwriting and Administering a Universal Life Type Insurance Policy [00107] In order to underwrite and administer a universal life type insurance policy, it is preferred to use an industry-standard enterprise-level insurance management software. No particular brand of such software is preferred. Typically an insurer will already have such software in place and will not purchase new software simply to implement the present methods; they will simply modify their current software.
If the insurer does happen to be choosing new software, then the choice will not likely be dictated by ability to perform the methods described herein (as it is believed that most, if not all, of such currently available commercial industry-standard software would be able to be so programmed, and there are likely far more important considerations that will dictate the insurer's choice). With respect to the actual programming of the particular software being used to carry out the present methods, such programming is within the skill of persons of ordinary skill in the art (the art being the programming of that particular brand of software as each brand will have its own methods of programming) and will not be detailed herein.

[00108] While it is preferred to use all of the built-in capabilities of the above-noted software to carry out the entirety of the present method, depending on the software MONTREAL.-26O8826.15 and/or its set-up or configuration, additional elements, such as an internet web server system, or an enterprise-level print server system may be required. Should such elements be required, their set-up and configuration and interaction with the enterprise-level insurance management software described above is within the skill of a person skilled in the art, will not likely be generally affected by the implementation of the present methods, and will not be detailed here.

[00109] With respect to computer hardware, no particular computer hardware is required other the computer hardware generally required to run the above-noted software.
The implementation of the present methods should not generally require any additional computer hardware.

Description of a Preferred Computer-Implemented Method for Underwriting and Administering a Universal Life Type Insurance Policy - First Aspect - Cost of Insurance Rate [00110] Referring to Figure 1, there is shown a preferred method for underwriting and administering a universal life type insurance policy, 100. At step 102, the application for the insurance policy (which includes all of the necessary information for evaluating and issuing the policy) is received. At step 104, information regarding the initial deposit of the policyholder is stored. At step 106, the initial amount of insurance is calculated as is described hereinabove. At step 108, the calculated initial amount of insurance is stored. At step 110, the policy is sent to be evaluated by underwriting in view of the information regarding the age, sex and health of the policyholder. At step 112, the information regarding the age, sex and health of the policyholder is stored (which may be carried out before step 110). At step 114, the initial cost of insurance rate, the first discount cost of insurance rate, and the second discount cost of insurance rate are calculated. At step 116, the calculated rates of insurance are stored. At step 118, the policy is approved and issues.

[00111] After the issuance of the policy, at step 120 the cost of insurance is calculated each business day, the cost of insurance being the cost of insurance rate for that day times the value of the investment account at the end of that day (this step MONTREAL:2608826.15 includes a sub-calculation as to which cost of insurance rate is applicable for that day -which is not shown). At step 122, the calculated cost of insurance is stored.
At step 124, the value of the investment account at the end of that day is reduced by the calculated cost of insurance. Optionally, at step 126, the new account value (after the reduction) may be displayed on a display device in communication with the computer system(s) administering the policy. Steps 120 through 124 and optionally step 126 are repeated for each business day of the policy. At step 128, after the 5th anniversary of the policy, in the sixth policy year and forward, the cost of insurance rate is fixed.

Description of a Preferred Computer-Implemented Method for Underwriting and Administering a Universal Life Type Insurance Policy - Second Aspect -Automatic Alteration of the Amount of Insurance for the Following Year [00112] Referring to Figure 2, there is shown a preferred method for underwriting and administering a universal life type insurance policy, 200. At step 202, the application for the insurance policy (which includes all of the necessary information for evaluating and issuing the policy) is received. At step 204, information regarding the initial deposit of the policyholder is stored. At step 206, the initial amount of insurance is calculated as is described hereinabove. At step 208, the calculated initial amount of insurance is stored. At step 210, the policy is sent to be evaluated by underwriting in view of the information regarding the age, sex and health of the policyholder. At step 212, the information regarding the age, sex and health of the policyholder is stored (which may be carried out before step 210). At step 214, the cost of insurance is calculated and stored.
At step 218, the policy is approved and issues.

[00113] After the issuance of the policy, at step 220 at the end of each year (from the IS` to the 10`h years) the forecasting method described above is carried out to determine the amount of insurance necessary for the following year. At step 222 the forecasted amount of insurance for the following year is stored. At step 224, the amount of insurance for the following year is altered, if necessary as described above, before the beginning of the following year.

MON REAL:2608826.15 [00114] It should be understood that the flow charts illustrated in Figures 1 and 2 are not intended to provide a complete detail overview of all of the elements of the underwriting and administration of a universal life type insurance policy.
They are simply meant to provide a brief schematic overview of aspects of the present invention.
They should not be interpreted as limiting the invention in any manner.

[00115] Modifications and improvements to the above-described embodiments of the present invention may become apparent to those skilled in the art. The foregoing description is intended to be exemplary rather than limiting. The scope of the present invention is therefore intended to be limited solely by the scope of the appended claims.

MONTREAL2608826.15

Claims

1. A computer-implemented method of underwriting and administering a life insurance policy with an investment option, the policy issued by an issuer for a policyholder, the policy having an amount of insurance and an investment account value, at least one of the amount of insurance and the investment account value being variable over at least a plurality of first periods of time from an initial amount of insurance and an initial investment account value at an initial one of the plurality of first periods of time to a then current amount of insurance and a then current investment account value at later ones of the plurality of first periods of time, the method comprising:
(I) prior to an issuance of the policy, (a) inputting, via at least one computer system, first data representative of at least the initial investment account value to be created by an initial deposit of the policyholder for the initial one of the plurality of first periods of time;
(b) storing the first data in at least one database in electronic communication with at least the at least one computer system;
(c) inputting, via the at least one computer system, second data representative of information required by the issuer to underwrite the policy, the second data including at least information related to the named insured's age, sex and health;
(d) storing the second data in the at least one database;
(e) calculating, via at least one computer processor in electronic communication with at least the at least one database, the initial amount of insurance of the policy at the issuance, the initial amount of insurance being at least a minimum amount of insurance required for the policy to qualify as a tax-exempt policy as defined in the Income Tax Act (Canada) for the initial one of the plurality of first periods of time based on the stored initial investment account value of the policy;
(f) storing, in the at least one database, third data at least representative of the calculated initial amount of insurance of the policy;

(g) calculating, via the at least one computer processor, a cost of insurance rate chargeable by the insurer to the policyholder in respect of the policy, the cost of insurance rate being based at least in part on information related to the named insured's age, sex and health stored in the second data;
(h) storing, in the at least one database, fourth data at least representative of the calculated cost of insurance rate for the policy; and (II) after the issuance of the policy, (i) calculating, via the at least one computer processor, for each one of a plurality of second periods of time, a cost of insurance to be charged for that one of the plurality of second periods of time, the cost of insurance being a function of at least the cost of insurance rate for the policy stored in the fourth data and the then current investment account value of the policy for that one of the plurality of second periods of time; and (j) storing, in the at least first database, fifth data representative of the calculated cost of insurance to be charged for that one of the plurality of second periods of time.

2. The computer-implemented method of underwriting and administering a life insurance policy with an investment option as claimed in claim 1, further comprising: (k) reducing, via the at least one computer processor, the then current investment account value of the policy for that one of the plurality of second periods of time by the cost of insurance to be charged for that one of the plurality of second periods of time stored in the fifth data.

3. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 1 to 2, further comprising, after reducing the then current investment account value, (1) sending to at least one of a display device and a printer the then current investment account value.

4. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 1 to 3, wherein the cost of insurance rate is based at least in part on the on information related to the named insured's age, sex and health in the stored second data.

5. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 1 to 3, wherein the cost of insurance rate is based solely on the on information related to the named insured's age, sex and health in the stored second data.

6. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 1 to 5, wherein each one of the plurality of first periods of time is a year.

7. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 1 to 6, wherein each one of the plurality of second periods of time is a day.

8. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 1 to 7, wherein a calculation of the cost of insurance to be charged for each one of the plurality of second periods of time includes a component being the cost of insurance rate for the policy multiplied by the then current investment account value of the policy for that one of the plurality of second periods of time.

9. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 1 to 7, wherein the cost of insurance to be charged for each one of the plurality of second periods of time is the cost of insurance rate for the policy multiplied by the then current investment account value of the policy for that one of the plurality of second periods of time.

10. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 1 to 9, wherein the initial amount of insurance is the minimum amount of insurance required for the policy to qualify as a tax-exempt policy as defined in the Income Tax Act (Canada) for the initial one of the plurality of first periods of time, plus an amount in respect of a projection of growth in the investment account value to occur during the initial one of the plurality of first periods of time owing to return on investment.

11. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 1 to 10, wherein the cost of insurance rate is unchangeable over a life of the policy.

12 The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 1 to 11, further comprising, after the issuance of the policy:
(m) for each one of at least a subset of successive ones of the plurality of first periods of time, calculating, via the at least one computer processor, an amount of insurance of the policy for an immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on a then current projection of any future deposits of the policyholder during the immediately following one of the plurality of first periods of time;
(n) storing, in the at least first database, sixth data representative of the calculated amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time; and (o) before an end of that one of the at least a subset of successive ones of the plurality of first periods of time, altering, if necessary, via the at least one computer processor, the amount of insurance of the policy for the immediately following one of the plurality of first periods of time to be not less than the stored calculated amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time.

13. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of claim 15, further comprising, prior to the issuance of the policy, inputting seventh data representative of pre-issuance-projected future deposits of the policyholder for at least some of the plurality of first periods of time; and wherein, after the issuance of the policy, for each one of the at least the subset of successive ones of the plurality of first periods of time, calculating, via the at least one computer processor, the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the then current projection of any future deposits of the policyholder during the immediately following one of the plurality of first periods of time, includes calculating, via the at least one computer processor, the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the stored pre-issuance-projected future deposits.

14. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 12 to 13, further comprising, after the issuance of the policy, for each one of the at least the subset of successive ones of the plurality of first periods of time, inputting eighth data representative of deposits of the policyholder in that one of the plurality of first periods of time; and wherein, after the issuance of the policy, for each one of the at least the subset of successive ones of the plurality of first periods of time, calculating, via the at least one computer processor, the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the then current projection of any future deposits of the policyholder during the immediately following one of the plurality of first periods of time, includes calculating, via the at least one computer processor, the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the stored deposits of the policyholder in that one of the plurality of first periods of time.

15. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of claim 14, wherein, after the issuance of the policy, for each one of the at least the subset of successive ones of the plurality of first periods of time, calculating, via the at least one computer processor, the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the then current projection of any deposits of the policyholder during the immediately following one of the plurality of first periods of time, includes calculating, via the at least the computer processor, the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the stored deposits of the policyholder in at least one period of the plurality of first periods of time prior to that one of the plurality of first periods of time.

16. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 12 to 15, wherein, after the issuance of the policy, for each one of the at least the subset of successive ones of the plurality of first periods of time, calculating, via the at least one computer processor, the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the then current projection of any deposits of the policyholder during the immediately following one of the plurality of first periods of time, includes calculating, via the at least the computer processor, the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the initial deposit of the policyholder.

17. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 12 to 16, further comprising, prior to the issuance of the policy, inputting ninth data indicative of ones of the plurality of first periods of time that are in the subset.

18. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 12 to 17, wherein the subset of successive ones of the plurality of first periods of time includes the initial one of the plurality of first periods of time.

19. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 12 to 18, wherein each one of the plurality of first periods of time in which the policyholder makes an deposit is included in the subset.

20. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 12 to 19, wherein the subset of successive ones of the plurality of first periods of time includes:
(i) the initial one of the plurality of first periods of time;
(ii) each one of the plurality of first periods of time subsequent to the initial one of the plurality of first periods of time in which a then average net deposit per periods of time is at least a predetermined amount of the initial deposit.

21. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 12 to 19, wherein the subset of successive ones of the plurality of first periods of time includes:
(i) the initial one of the plurality of first periods of time;
(ii) the second one of the plurality of first periods of time;
(iii) the third one of the plurality of first periods of time; and (iv) each one of the plurality of first periods of time subsequent to the third one of the plurality of first periods of time in which a then average net deposit per first period of time is at least a predetermined amount of the of the initial deposit.

22. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 20 to 21, wherein the predetermined amount of the initial deposit is 75 % of the initial deposit.

23. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 12 to 22, wherein the subset includes solely from 3 to 10 of the first periods of time

24. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 12 to 23, wherein the altering, if necessary, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time to be not less than the stored amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time occurs without additional underwriting.

25. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 12 to 24, wherein the altering, if necessary, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time to be not less than the stored amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time occurs without altering the cost of insurance chargeable in respect of the policy.

26. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 12 to 25, wherein the altering, if necessary, via the at least one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time to be not less than the stored amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time is altering, if necessary, via the at least one computer processor, the amount of insurance of the policy for the immediately following one of the plurality of first periods of time to be the stored amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time.

27. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 12 to 26, wherein, the altering, if necessary, via the at least one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time to be not less than the stored amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, occurs immediately prior to the end of that one of the at least the subset of successive ones of the plurality of first periods of time.

28. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 12 to 27, wherein calculating, via the at least one computer processor, the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the then current projection of any future deposits of the policyholder during the immediately following one of the plurality of first periods of time includes calculating, via the at least one computer processor, the amount of insurance of the policy for an immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on a then current projection of growth in the investment account value to occur during the immediately following one of the plurality of first periods of time owing to return on investment.

29. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 12 to 28, wherein, altering, if necessary, via the at least one computer processor, the amount of insurance of the policy for the immediately following one of the plurality of first periods of time to be not less than the stored amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, is, for at least one of the subset of successive ones of the plurality of first periods of time, reducing the amount of insurance of the policy for the immediately following one of the plurality of first periods of time.

30. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 12 to 29, further comprising, after the issuance of the policy, for each one of the subset of successive ones of the plurality of first periods of time, if the amount of insurance of the policy for the immediately following one of the plurality of first periods of time is altered, (p) sending to at least one of a display device and a printer the altered amount of insurance.

31. A computer-implemented method of underwriting and administering a life insurance policy with an investment option, the policy issued by an issuer for a policyholder, the policy having an amount of insurance and an investment account value, at least one of the amount of insurance and the investment account value being variable over at least a plurality of first periods of time from an initial amount of insurance and an initial investment account value at an initial one of the plurality of first periods of time to a then current amount of insurance and a then current investment account value at later ones of the plurality of first periods of time, the method comprising:
(I) prior to an issuance of the policy, (a) inputting, via at least one computer system, first data representative of at least the initial investment account value to be created by an initial deposit of the policyholder for the initial one of the plurality of first periods of time;
(b) storing the first data in at least one database in electronic communication with at least the at least first computer system;
(c) inputting, via the at least one computer system, second data representative of information required by the issuer to underwrite the policy, the second data including at least information related to the named insured's age, sex and health;
(d) storing the second data in the at least one database;
(e) calculating, via at least one computer processor in electronic communication with at least the at least one database, the initial amount of insurance of the policy at the issuance, the initial amount of insurance being at least a minimum amount of insurance required for the policy to qualify as a tax-exempt policy as defined in the Income Tax Act (Canada) for the initial one of the plurality of first periods of time based on the stored initial investment account value of the policy;
(f) storing, in the at least first database, third data at least representative of the calculated initial amount of insurance of the policy; and (g) calculating, via the at least one computer processor, a cost of insurance chargeable by the insurer to the policyholder in respect of the policy, the cost of insurance being based at least in part on the information related to the named insured's age, sex and health stored second data;
(h) storing, in the at least one database, fourth data at least representative of the cost of insurance for the policy;
(II) after the issuance of the policy, (i) for each one of at least a subset of successive ones of the plurality of first periods of time, calculating, via the at least one computer processor, an amount of insurance of the policy for an immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on a then current projection of any future deposits of the policyholder during the immediately following one of the plurality of first periods of time;
(j) storing, in the at least first database, fifth data representative of the calculated amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time; and (k) before an end of that one of the at least a subset of successive ones of the plurality of first periods of time, altering, if necessary, via the at least one computer processor, the amount of insurance of the policy for the immediately following one of the plurality of first periods of time to be not less than the stored calculated amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time.

32. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of claim 31, further comprising, prior to the issuance of the policy, inputting sixth data representative of pre-issuance-projected future deposits of the policyholder for at least some of the plurality of first periods of time; and wherein, after the issuance of the policy, for each one of the at least the subset of successive ones of the plurality of first periods of time, calculating, via the at least one computer processor, the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the then current projection of any future deposits of the policyholder during the immediately following one of the plurality of first periods of time, includes calculating, via the at least one computer processor, the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the stored pre-issuance-projected future deposits.

33. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 31 to 32, further comprising, after the issuance of the policy, for each one of the at least the subset of successive ones of the plurality of first periods of time, inputting seventh data representative of deposits of the policyholder in that one of the plurality of first periods of time; and wherein, after the issuance of the policy, for each one of the at least the subset of successive ones of the plurality of first periods of time, calculating, via the at least one computer processor, the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the then current projection of any future deposits of the policyholder during the immediately following one of the plurality of first periods of time, includes calculating, via the at least one computer processor, the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the stored deposits of the policyholder in that one of the plurality of first periods of time.

34. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of claim 33, wherein, after the issuance of the policy, for each one of the at least the subset of successive ones of the plurality of first periods of time, calculating, via the at least one computer processor, the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the then current projection of any deposits of the policyholder during the immediately following one of the plurality of first periods of time, includes calculating, via the at least the computer processor, the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the stored deposits of the policyholder in at least one period of the plurality of first periods of time prior to that one of the plurality of first periods of time.

35. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 31 to 34, wherein, after the issuance of the policy, for each one of the at least the subset of successive ones of the plurality of first periods of time, calculating, via the at least one computer processor, the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the then current projection of any deposits of the policyholder during the immediately following one of the plurality of first periods of time, includes calculating, via the at least the computer processor, the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the initial deposit of the policyholder.

36. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 31 to 35, further comprising, prior to the issuance of the policy, inputting eighth data indicative of ones of the plurality of first periods of time that are in the subset.

37. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 31 to 36, wherein the subset of successive ones of the plurality of first periods of time includes the initial one of the plurality of first periods of time.

38. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 31 to 37, wherein each one of the plurality of first periods of time in which the policyholder makes an deposit is included in the subset.

39. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 31 to 38, wherein the subset of successive ones of the plurality of first periods of time includes:
(i) the initial one of the plurality of first periods of time;
(ii) each one of the plurality of first periods of time subsequent to the initial one of the plurality of first periods of time in which a then average net deposit per periods of time is at least a predetermined amount of the initial deposit.

40. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 31 to 38, wherein the subset of successive ones of the plurality of first periods of time includes:
(i) the initial one of the plurality of first periods of time;
(ii) the second one of the plurality of first periods of time;
(iii) the third one of the plurality of first periods of time; and (iv) each one of the plurality of first periods of time subsequent to the third one of the plurality of first periods of time in which a then average net deposit per first period of time is at least a predetermined amount of the of the initial deposit.

41. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 39 to 40, wherein the predetermined amount of the initial deposit is 75 % of the initial deposit.

42. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 31 to 41, wherein the subset includes solely from 3 to 10 of the first periods of time.

43. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 31 to 42, wherein each of the plurality of first periods of time is a year.

44. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 31 to 43, wherein the altering, if necessary, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time to be not less than the stored amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time occurs without additional underwriting.

45. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 31 to 44, wherein the altering, if necessary, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time to be not less than the stored amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time occurs without altering the cost of insurance chargeable in respect of the policy.

46. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 31 to 45, wherein the initial amount of insurance is the minimum amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the initial one of the plurality of first periods of time, plus an amount in respect of a projection of growth in the investment account value to occur during the initial one of the plurality of first periods of time owing to return on investment.

47. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 31 to 46, wherein the altering, if necessary, via the at least one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time to be not less than the stored amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time is altering, if necessary, via the at least one computer processor, the amount of insurance of the policy for the immediately following one of the plurality of first periods of time to be the stored amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time.

48. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 31 to 47, wherein, the altering, if necessary, via the at least one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time to be not less than the stored amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, occurs immediately prior to the end of that one of the at least the subset of successive ones of the plurality of first periods of time.

49. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 31 to 48, wherein calculating, via the at least one computer processor, the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the then current projection of any future deposits of the policyholder during the immediately following one of the plurality of first periods of time includes calculating, via the at least one computer processor, the amount of insurance of the policy for an immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on a then current projection of growth in the investment account value to occur during the immediately following one of the plurality of first periods of time owing to return on investment.

50. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 31 to 49, wherein, the altering, if necessary, via the at least one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time to be not less than the stored amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, is, for at least one of the subset of successive ones of the plurality of first periods of time, reducing the amount of insurance of the policy for the immediately following one of the plurality of first periods of time.

51. The computer-implemented method of underwriting and administering a life insurance policy with an investment option of any one of claims 31 to 50, further comprising, after the issuance of the policy, for each one of the subset of successive ones of the plurality of first periods of time, if the amount of insurance of the policy for the immediately following one of the plurality of first periods of time is altered, (1) sending to at least one of a display device and a printer the altered amount of insurance.

52. A computer system for underwriting and administering a life insurance policy with an investment option, the policy issued by an issuer for a policyholder, the policy having an amount of insurance and an investment account value, at least one of the amount of insurance and the investment account value being variable over at least a plurality of first periods of time from an initial amount of insurance and an initial investment account value at an initial one of the plurality of first periods of time to a then current amount of insurance and a then current investment account value at later ones of the plurality of first periods of time, the computer system comprising:
(a) a first component that prior to an issuance of the policy receives first data representative of at least the initial investment account value to be created by an initial deposit of the policyholder for the initial one of the plurality of first periods of time;
(b) a second component that causes storage of the first data in at least one database;

(c) a third component that prior to the issuance of the policy receives second data representative of information required by the issuer to underwrite the policy, the second data including at least information related to the named insured's age, sex and health;
(d) a fourth component that causes storage of the second data in the at least one database;
(e) a fifth component that causes a calculation, via at least one computer processor, of the initial amount of insurance of the policy at the issuance, the initial amount of insurance being at least a minimum amount of insurance required for the policy to qualify as a tax-exempt policy as defined in the Income Tax Act (Canada) for the initial one of the plurality of first periods of time based on the stored initial investment account value of the policy;
(f) a sixth component that causes storage, in the at least one database, of third data at least representative of the calculated initial amount of insurance of the policy;
(g) a seventh component that causes a calculation, via the at least one computer processor, of a cost of insurance rate chargeable by the insurer to the policyholder in respect of the policy, the cost of insurance rate being based at least in part on information related to the named insured's age, sex and health stored in the second data;
(h) a eighth component that causes storage, in the at least one database, of fourth data at least representative of the calculated cost of insurance rate for the policy; and (i) a ninth component that, after the issuance of the policy, causes a calculation, via the at least one computer processor, for each one of a plurality of second periods of time, a cost of insurance to be charged for that one of the plurality of second periods of time, the cost of insurance being a function of at least the cost of insurance rate for the policy stored in the fourth data and the then current investment account value of the policy for that one of the plurality of second periods of time; and a tenth component that causes storage, in the at least first database, of fifth data representative of the calculated cost of insurance to be charged for that one of the plurality of second periods of time.

53. The computer system for underwriting and administering a life insurance policy with an investment option as claimed in claim 52, further comprising: an eleventh component that after the issuance of the policy causes a reduction, via the at least one computer processor, of the then current investment account value of the policy for that one of the plurality of second periods of time by the cost of insurance to be charged for that one of the plurality of second periods of time stored in the fifth data.

54. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 52 to 53, further comprising, a twelfth component that after the reduction of the then current investment account value causes the then current investment account value to be sent to at least one of a display device and a printer.

55. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 52 to 54, wherein the cost of insurance rate is based at least in part on the information related to the named insured's age, sex and health in the stored second data.

56. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 52 to 54, wherein the cost of insurance rate is based solely on the information related to the named insured's age, sex and health in the stored second data.

57. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 52 to 56, wherein each one of the plurality of first periods of time is a year.

58. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 52 to 57, wherein each one of the plurality of second periods of time is a day.

59. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 52 to 58, wherein a calculation of the cost of insurance to be charged for each one of the plurality of second periods of time includes a component bring the cost of insurance rate for the policy multiplied by the then current investment account value of the policy for that one of the plurality of second periods of time.

60. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 52 to 59, wherein the cost of insurance to be charged for each one of the plurality of second periods of time is the cost of insurance rate for the policy multiplied by the then current investment account value of the policy for that one of the plurality of second periods of time.

61. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 52 to 60, wherein the initial amount of insurance is the minimum amount of insurance required for the policy to qualify as a tax-exempt policy as defined in the Income Tax Act (Canada) for the initial one of the plurality of first periods of time, plus an amount in respect of a projection of growth in the investment account value to occur during the initial one of the plurality of first periods of time owing to return on investment.

62. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 52 to 61, wherein the cost of insurance rate is unchangeable over a life of the policy.

63. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 52 to 62, further comprising, (k) a thirteenth component that after the issuance of the policy for each one of at least a subset of successive ones of the plurality of first periods of time, causes a calculation, via the at least one computer processor, of an amount of insurance of the policy for an immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on a then current projection of any future deposits of the policyholder during the immediately following one of the plurality of first periods of time;
(1) a fourteenth component that causes storage, in the at least first database, of sixth data representative of the calculated amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time; and (m) a fifteenth component that before an end of that one of the at least a subset of successive ones of the plurality of first periods of time, causes an alteration, if necessary, via the at least one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time to be not less than the stored calculated amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time.

64. The computer system for underwriting and administering a life insurance policy with an investment option of claim 63, further comprising, a sixteenth component that prior to the issuance of the policy receives seventh data representative of pre-issuance-projected future deposits of the policyholder for at least some of the plurality of first periods of time; and wherein, after the issuance of the policy, for each one of the at least the subset of successive ones of the plurality of first periods of time, the calculation, via the at least one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the then current projection of any future deposits of the policyholder during the immediately following one of the plurality of first periods of time, includes a calculation, via the at least one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the stored pre-issuance-projected future deposits.

65. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 63 to 64, further comprising, a seventeenth component that after the issuance of the policy, for each one of the at least the subset of successive ones of the plurality of first periods of time, receives eighth data representative of deposits of the policyholder in that one of the plurality of first periods of time; and wherein, after the issuance of the policy, for each one of the at least the subset of successive ones of the plurality of first periods of time, the calculation, via the at least one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the then current projection of any future deposits of the policyholder during the immediately following one of the plurality of first periods of time, includes a calculation, via the at least one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the stored deposits of the policyholder in that one of the plurality of first periods of time.

66. The computer system for underwriting and administering a life insurance policy with an investment option of claim 65, wherein, after the issuance of the policy, for each one of the at least the subset of successive ones of the plurality of first periods of time, the calculation, via the at least one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the then current projection of any deposits of the policyholder during the immediately following one of the plurality of first periods of time, includes a calculation, via the at least the one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the stored deposits of the policyholder in at least one period of the plurality of first periods of time prior to that one of the plurality of first periods of time.

67. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 63 to 66, wherein, after the issuance of the policy, for each one of the at least the subset of successive ones of the plurality of first periods of time, the calculation, via the at least one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the then current projection of any deposits of the policyholder during the immediately following one of the plurality of first periods of time, includes a calculation, via the at least the computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the initial deposit of the policyholder.

68. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 63 to 67, further comprising, an eighteenth component that prior to the issuance of the policy, receives ninth data indicative of ones of the plurality of first periods of time that are in the subset.

69. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 63 to 68, wherein the subset of successive ones of the plurality of first periods of time includes the initial one of the plurality of first periods of time.

70. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 63 to 69, wherein each one of the plurality of first periods of time in which the policyholder makes an deposit is included in the subset.

71. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 63 to 70, wherein the subset of successive ones of the plurality of first periods of time includes:
(i) the initial one of the plurality of first periods of time;
(ii) each one of the plurality of first periods of time subsequent to the initial one of the plurality of first periods of time in which a then average net deposit per periods of time is at least a predetermined amount of the initial deposit.

72. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 63 to 71, wherein the subset of successive ones of the plurality of first periods of time includes:
(i) the initial one of the plurality of first periods of time;
(ii) the second one of the plurality of first periods of time;
(iii) the third one of the plurality of first periods of time; and (iv) each one of the plurality of first periods of time subsequent to the third one of the plurality of first periods of time in which a then average net deposit per first period of time is at least a predetermined amount of the of the initial deposit.

73. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 71 to 72, wherein the predetermined amount of the initial deposit is 75 % of the initial deposit.

74. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 63 to 73, wherein the subset includes solely from 3 to 10 of the first periods of time.

75. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 63 to 74, wherein the alteration, if necessary, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time to be not less than the stored amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time occurs without additional underwriting.

76. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 63 to 75, wherein the alteration, if necessary, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time to be not less than the stored amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time occurs without alteration of the cost of insurance rate chargeable in respect of the policy.

77. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 63 to 76, wherein the alteration, if necessary, via the at least one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time to be not less than the stored amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time is an alteration, if necessary, via the at least one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time to be the stored amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time.

78. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 63 to 77, wherein, the alteration, if necessary, via the at least one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time to be not less than the stored amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, occurs immediately prior to the end of that one of the at least the subset of successive ones of the plurality of first periods of time.

79. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 63 to 78, wherein the calculation, via the at least one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the then current projection of any future deposits of the policyholder during the immediately following one of the plurality of first periods of time includes a calculation, via the at least one computer processor, of the amount of insurance of the policy for an immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on a then current projection of growth in the investment account value to occur during the immediately following one of the plurality of first periods of time owing to return on investment.

80. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 63 to 79, wherein, the alteration, if necessary, via the at least one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time to be not less than the stored amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, is, for at least one of the subset of successive ones of the plurality of first periods of time, a reduction of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time.

81. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 63 to 80, further comprising, a nineteenth component that after the issuance of the policy, for each one of the subset of successive ones of the plurality of first periods of time, if the amount of insurance of the policy for the immediately following one of the plurality of first periods of time is altered, sends the altered amount of insurance to at least one of a display device and a printer.

82. A computer system for underwriting and administering a life insurance policy with an investment option, the policy issued by an issuer for a policyholder, the policy having an amount of insurance and an investment account value, at least one of the amount of insurance and the investment account value being variable over at least a plurality of first periods of time from an initial amount of insurance and an initial investment account value at an initial one of the plurality of first periods of time to a then current amount of insurance and a then current investment account value at later ones of the plurality of first periods of time, the computer system comprising:
(a) a first component that prior to an issuance of the policy receives first data representative of at least the initial investment account value to be created by an initial deposit of the policyholder for the initial one of the plurality of first periods of time;
(b) a second component that causes storage of the first data in at least one database;
(c) a third component that prior to issuance of the policy receives second data representative of information required by the issuer to underwrite the policy, the second data including at least information related to the named insured's age, sex and health;
(d) a fourth component that causes storage of the second data in the at least one database;
(e) a fifth component that causes a calculation, via at least one computer processor, of the initial amount of insurance of the policy at the issuance, the initial amount of insurance being at least a minimum amount of insurance required for the policy to qualify as a tax-exempt policy as defined in the Income Tax Act (Canada) for the initial one of the plurality of first periods of time based on the stored initial investment account value of the policy;
(f) a sixth component that causes storage, in the at least first database, of third data at least representative of the calculated initial amount of insurance of the policy; and (g) a seventh component that causes a calculation, via the at least one computer processor, of a cost of insurance chargeable by the insurer to the policyholder in respect of the policy, the cost of insurance being based at least in part on the information related to the named insured's age, sex and health stored second data;
(h) an eighth component that causes storage, in the at least one database, of fourth data at least representative of the calculated cost of insurance for the policy;
(i) a ninth component that, after the issuance of the policy, causes a calculation, via the at least one computer processor, for each one of at least a subset of successive ones of the plurality of first periods of time, calculating, via, an amount of insurance of the policy for an immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on a then current projection of any future deposits of the policyholder during the immediately following one of the plurality of first periods of time;
(j) a tenth component that causes storage, in the at least first database, of fifth data representative of the calculated amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time; and (k) an eleventh component that, before an end of that one of the at least a subset of successive ones of the plurality of first periods of time, causes an alteration, if necessary, via the at least one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time to be not less than the stored calculated amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time.

83. The computer system for underwriting and administering a life insurance policy with an investment option of claim 82, further comprising, a twelfth component that prior to the issuance of the policy receives sixth data representative of pre-issuance-projected future deposits of the policyholder for at least some of the plurality of first periods of time; and wherein, after the issuance of the policy, for each one of the at least the subset of successive ones of the plurality of first periods of time, the calculation, via the at least one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the then current projection of any future deposits of the policyholder during the immediately following one of the plurality of first periods of time, includes a calculation, via the at least one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the stored pre-issuance-projected future deposits.

84. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 82 to 83, further comprising, a thirteenth component that after the issuance of the policy, for each one of the at least the subset of successive ones of the plurality of first periods of time, receives seventh data representative of deposits of the policyholder in that one of the plurality of first periods of time; and wherein, after the issuance of the policy, for each one of the at least the subset of successive ones of the plurality of first periods of time, the calculation, via the at least one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the then current projection of any future deposits of the policyholder during the immediately following one of the plurality of first periods of time, includes a calculation, via the at least one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the stored deposits of the policyholder in that one of the plurality of first periods of time.

85. The computer system for underwriting and administering a life insurance policy with an investment option of claim 84, wherein, after the issuance of the policy, for each one of the at least the subset of successive ones of the plurality of first periods of time, the calculation, via the at least one computer processor, the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the then current projection of any deposits of the policyholder during the immediately following one of the plurality of first periods of time, includes a calculation, via the at least the one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the stored deposits of the policyholder in at least one period of the plurality of first periods of time prior to that one of the plurality of first periods of time.

86. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 82 to 85, wherein, after the issuance of the policy, for each one of the at least the subset of successive ones of the plurality of first periods of time, the calculation, via the at least one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the then current projection of any deposits of the policyholder during the immediately following one of the plurality of first periods of time, includes a calculation, via the at least the computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the initial deposit of the policyholder.

87. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 82 to 86, further comprising, a fourteenth component that prior to the issuance of the policy receives eighth data indicative of ones of the plurality of first periods of time that are in the subset.

88. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 82 to 87, wherein the subset of successive ones of the plurality of first periods of time includes the initial one of the plurality of first periods of time.

89. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 82 to 88, wherein each one of the plurality of first periods of time in which the policyholder makes an deposit is included in the subset.

90. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 82 to 89, wherein the subset of successive ones of the plurality of first periods of time includes:
(i) the initial one of the plurality of first periods of time;

(ii) each one of the plurality of first periods of time subsequent to the initial one of the plurality of first periods of time in which a then average net deposit per periods of time is at least a predetermined amount of the initial deposit.

91. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 82 to 90, wherein the subset of successive ones of the plurality of first periods of time includes:
(i) the initial one of the plurality of first periods of time;
(ii) the second one of the plurality of first periods of time;
(iii) the third one of the plurality of first periods of time; and (iv) each one of the plurality of first periods of time subsequent to the third one of the plurality of first periods of time in which a then average net deposit per first period of time is at least a predetermined amount of the of the initial deposit.

92. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 82 to 91, wherein the predetermined amount of the initial deposit is 75% of the initial deposit.

93. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 82 to 92, wherein the subset includes solely from 3 to 10 of the first periods of time.

94. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 82 to 93, wherein each of the plurality of first periods of time is a year.

95. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 82 to 94, wherein the alteration, if necessary, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time to be not less than the stored amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time occurs without additional underwriting.

96. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 82 to 95, wherein the alteration, if necessary, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time to be not less than the stored amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time occurs without altering the cost of insurance chargeable in respect of the policy.

97. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 82 to 96, wherein the initial amount of insurance is the minimum amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the initial one of the plurality of first periods of time, plus an amount in respect of a projection of growth in the investment account value to occur during the initial one of the plurality of first periods of time owing to return on investment.

98. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 82 to 97, wherein the alteration, if necessary, via the at least one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time to be not less than the stored amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time is an alteration, if necessary, via the at least one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time to be the stored amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time.

99. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 82 to 98, wherein, the alteration, if necessary, via the at least one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time to be not less than the stored amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, occurs immediately prior to the end of that one of the at least the subset of successive ones of the plurality of first periods of time.

100. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 82 to 99, wherein the calculation, via the at least one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on the then current projection of any future deposits of the policyholder during the immediately following one of the plurality of first periods of time includes a calculation, via the at least one computer processor, of the amount of insurance of the policy for an immediately following one of the plurality of first periods of time required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, based at least in part on a then current projection of growth in the investment account value to occur during the immediately following one of the plurality of first periods of time owing to return on investment.

101. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 82 to 100, wherein, the alteration, if necessary, via the at least one computer processor, of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time to be not less than the stored amount of insurance required to maintain the policy as a tax-exempt policy as defined in the Income Tax Act (Canada) for the immediately following one of the plurality of first periods of time, is, for at least one of the subset of successive ones of the plurality of first periods of time, a reduction of the amount of insurance of the policy for the immediately following one of the plurality of first periods of time.

102. The computer system for underwriting and administering a life insurance policy with an investment option of any one of claims 82 to 101, further comprising, a fifteenth component that after the issuance of the policy, for each one of the subset of successive ones of the plurality of first periods of time, if the amount of insurance of the policy for the immediately following one of the plurality of first periods of time is altered, sends the altered amount of insurance to at least one of a display device and a printer.