Inventors:
Michael Roscoe - South Windsor CT, US
Jerry Scheinfeldt - East Hartford CT, US
James Hedreen - Madison NJ, US
Jerry Schwartz - Fisher Island FL, US
International Classification:
G06F017/60
Abstract:
A method for determining a life insurance policy value by tracking and reconciling a policy's value in units that have a normalized value is disclosed. In accordance with the principles of the invention, a normalize unit value is determined at the conclusion of each of a predetermined period from a preceding net unit value and an investment instrument performance return achieved during each period. No fees associated with performance or management are deducted from the policy value principle or investment gain during each predetermined period. Rather, when an investment performance return is positive, a known percentage of the positive investment return is determined and accumulated, i.e. carried forward, to a predetermined date. When the performance return is negative, the known percentage is set to zero. At the predetermined date, the policy value is reconciled by deducting the accumulated percentage of the positive return is represented in units, based on the current net unit value, from the insurance policy value. Accordingly, fees only accumulate when a positive return is determined and only deducted at a specified time.
