Combined annuity and life insurance method and system

A method for forming an annuity and life insurance product comprising the steps of:

• selecting an annuity policy;
• selecting a life insurance policy;
• selecting annuity data, including selecting an annuity fund deposit amount, selecting an annuity owner, selecting an annuity beneficiary, selecting an annuitant, and selecting an annuity investment option;
• selecting life insurance data, including selecting a policy owner, selecting an insured individual, and selecting a policy beneficiary;
• entering the annuity policy selection, the life insurance policy selection, the annuity data, the life insurance data, insurance company fees and life insurance regulatory requirements into a data processing apparatus, the data processing apparatus having storage, processing and display elements;
• calculating investment gains from the annuity policy;
• at periodic intervals using the investment gains, if any, to loan funds to the life insurance owner to purchase the life insurance policy;
• at periodic intervals calculating life insurance death benefit and cash value amounts regardless of annuity policy investment gain;
• and
• at periodic intervals displaying the life insurance death benefit and cash value amounts.

A data processing system for processing data associated with an annuity product including an annuity contract and a life insurance contract, the data processing system comprising:

• a storage device for storing data relating to the annuity contract and to the life insurance contract, and annuity and life insurance data including an annuity owner, an annuity beneficiary, an annuitant, an annuity fund deposit amount, an annuity investment option, an annuity management fee, an investment index, an annuity loan rate, an insurance contract owner, an insured individual, an insurance contract beneficiary, a life insurance policy fee, a cost of insurance data, and an annuity investment gain;
• a processor in communication with the storage device, the processor configured to:
• calculate expenses attributed to the product;
• calculate a value of the annuity contract at a first predetermined date;
• calculate a net annuity investment gain over a predetermined period;
• calculate a value of the annuity contract at a second predetermined date;
• transfer the net annuity investment gain, if any, from the annuity contract to the life insurance owner;
• purchase life insurance with the amount of net annuity investment gain, if any;
• calculate death benefit and cash value amounts of the insurance contract;
• store data relating to the values of the annuity contract;
• store data relating to the amounts of the life insurance contract;
• and
• display, print and/or store preselected data relating to the annuity values and the insurance amounts.