Method of Providing Collateral Financed Premium for Insurance Policy and System Thereof

Abstract

A method of providing collateral financed premium for an insurance policy includes the steps of securing a premium loan from a lender for annual premiums of an insured borrower of an insurance policy, and securing a collateral loan from a third party for payment of interests of the annual premium loan, wherein the interest of the financed premium will be paid by the collateral loan when an earning income from a contract value of the insurance policy is less than the annual interest of the premium loan. In addition, in computation of the contract value and the total premium loan required, credit rate of the contract value for at least the first two years of the insurance policy is set as zero percent.

Dependencies are inferred from the claim text.