A system for providing loans to owners of life insurance policies who are
terminally ill or aged. The system comprises a statistical module, medical
module and a financial module which together operate on a preselected
group of inputs to yield a line of credit offered to the policyholder. The
system provides a line of credit line of credit to those insured under an
insurance policy without transfer of ownership of the policy. The system
determines eligibility and the line of credit for the insured. The system
has an entering device for entering an insured's application data,
including the insured's date of birth and the medical diagnosis of the
insured, and for generating an output therefrom. The system also has a
generating device for receiving the output from the entering device and
for generating a function therefrom having a probability distribution
describing the future life distribution of the insured and a computing
device for receiving the function from the generating device and for
computing the line of credit to be extended to the insured based upon the
received function and financial assumptions. The owner retains ownership
of the policy during his lifetime, and the insured has a line of credit
extended as determined by the system.