Method and system for cooperative life insurance with variable payout

A system comprising:

• (a) a processor;
• (b) storage storing computer readable programmable code executable by the processor, the storage comprising:
• i. computer readable program code receiving a request for participation in a fund for a term from a user, the request comprising a payout and a plurality of information associated with the user;
• ii. computer readable program code evaluating the plurality of information associated with the user and verifying an eligibility of the user in the cooperative life insurance fund and, upon verifying eligibility, enrolling the user as a participant among the plurality of participants and generating a policy for the participant for the requested term, wherein the policy specifies a contribution by the participant and a base benefit multiplier, and wherein a payout to a beneficiary of the participant is computed by setting aside a management fee from the contribution by the participant during a time period from a beginning of the term until a time of claim payout, and multiplying a remainder of the contribution by the participant with the base benefit multiplier and a benefit adjustment factor, whereby:
• (1) the base benefit multiplier is computed using a discrete non-linear function that varies according to one or more information in the plurality of information;
• and (2) the benefit adjustment factor is computed to be proportional to a difference between a performance of the cooperative life insurance fund at the time of beneficiary payout and a projected fund performance at the beginning of the term;
• iii. computer readable program code periodically collecting, over a first pre-determined time interval, a payment for the contribution from the plurality of participants;
• iv. computer readable program code periodically computing, over a second pre-determined time interval, the benefit adjustment factor for the cooperative life insurance fund to adjust payouts;
• and
• v. computer readable program code determining when a payout is deemed necessary to a given beneficiary associated with a given participant among the plurality of participants, and determining a given claim payout and transferring the given claim payout to the given beneficiary and eliminating the given participant among the plurality of participants associated with the cooperative life insurance fund;
• (c) a database to store participant profiles, accounts, policies and security settings, and historic and present insurance fund information including pool, surplus and investments;
• and
• (d) a communications interface to communicate with at least a fund operator's system, a participant's client application, and a payment gateway.