UTILIZING LIFE INSURANCE TO BENEFIT A CHARITY

• US 20090037226A1
• Filed: 07/31/2007
• Published: 02/05/2009
• Est. Priority Date: 07/31/2007
• Status: Abandoned Application

• Current Assignee: National Madison Group Incorporated
• Original Assignee: National Madison Group Incorporated
• Inventors: Radin, Sam
• Application Number:
  US11/831,565
• Publication Number:
  US 20090037226A1
• Time in Patent Office: Days
• US Class Current: 705/4
• CPC Class Codes: G06Q 10/10 Office automation; Time management
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

Funding a charity includes identifying an individual whose life represents an insurable interest to the charity, obtaining an insurance policy to cover the identified individual'"'"'s life, funding premiums for the insurance policy from a funding source other than the insured individual and paying proceeds from the insurance policy for the benefit of the charity, pursuant to an agreement made approximately when the insurance policy was obtained.

Claims

14-1. The method of claim 1 wherein the funding source is an entity other than the charity.

22. A method of financing a charity'"'"'s capital project, the method comprising:

issuing a first set of municipal bonds to provide a funding source for insurance policy premiums;

issuing a second set of municipal bonds to finance a capital project associated with the charity'"'"'s charitable purpose; and

pledging the life insurance proceeds to pay holders of the second set of municipal bonds.

23. The method of claim 22 further comprising:

identifying an individual whose life represents an insurable interest to the charity;

obtaining an insurance policy to cover the identified individual'"'"'s life; and

funding the insurance policy premiums with funds from the issuance of the first set of municipal bonds.

24. The method of claim 23 further comprising:

designating the charity as a beneficiary of the insurance policy so that policy proceeds are paid to the charity.

25. The method of claim 23 wherein policy proceeds are paid upon the insured individual'"'"'s death and comprise a basic insurance amount, plus a sum of the premiums paid to date, plus interest on the sum of the premiums paid as of the date the policy proceeds are made available.

26. The method of claim 23 wherein policy proceeds are paid upon a sale of the insurance policy by the charity to a third party.

27. The method of claim 23 further comprising:

quantifying a value associated with the insurable interest; and

structuring the insurance policy in accordance with the quantified value.

28. The method of claim 27 wherein the life insurance policy is structured so that, upon the death of the insured individual, the charity receives sufficient capital to continue receiving the quantified value.

29. The method of claim 27 wherein the insurable interest is based on the insured individual'"'"'s history of contributions to the charity.

30. The method of claim 29 wherein the contributions comprise periodic financial donations.

31. The method of claim 29 wherein the contributions comprise services volunteered to the charity, and

wherein quantifying the insurable interest comprises:

assigning a value per unit of time to the services volunteered;

estimating how many units of time were volunteered by the insured individual; and

calculating a average value per unit of time received by the charity based on the services volunteered.

32. The method of claim 23 further comprising evaluating whether the individual is insurable by considering at least one of the characteristic from the following group:

the individual'"'"'s age, the individual'"'"'s health and an estimated life expectancy for the individual.

33. The method of claim 23 further comprising selling an interest in the insurance policy to a third party as a life settlement.

42. The method of claim 33 wherein arranging for the payment of proceeds from the insurance policy for the benefit of the charity is performed approximately when the insurance policy is obtained.

34. A method of facilitating the funding of a charity, the method comprising:

identifying an individual whose life represents an insurable interest to the charity;

obtaining an insurance policy to cover the identified individual'"'"'s life on behalf of the charity;

arranging for the funding of insurance policy premiums from a funding source other than the insured individual; and

arranging for the payment of proceeds from the insurance policy for the benefit of the charity.

35. The method of claim 34 comprising arranging for the charity to be designated a beneficiary of the insurance policy.

36. The method of claim 34 further comprising:

quantifying a value associated with the insurable interest; and

structuring the insurance policy in accordance with the quantified value.

37. The method of claim 36 wherein the life insurance policy is structured so that, upon the death of the insured individual, the charity receives sufficient capital to continue receiving the quantified value.

38. The method of claim 36 wherein the insurable interest is based on the insured individual'"'"'s history of contributions to the charity.

39. The method of claim 34 further comprising arranging for an evaluation of whether the individual is insurable with consideration to at least one of the characteristics from the following group:

the individual'"'"'s age, the individual'"'"'s health and an estimated life expectancy for the individual.

40. The method of claim 34 wherein obtaining the insurance policy comprises:

soliciting competitive bids on behalf of the charity from more than one insurance company; and

assisting the charity to evaluate bids received.

41. The method of claim 34 further comprising:

obtaining competitive bids from more than one life settlement provider to sell an interest in the insurance policy to a third party; and

assisting the charity to evaluate bids received.