Abstract: A method and system for insuring against a potential loss in future value of a life insurance policy by providing a stated value insurance policy (“SV Policy”). The SV Policy is purchased by the owner of the life insurance policy contemporaneously with the purchase of the life insurance policy or at any time thereafter. If, at a specified future time(s), the life insurance policy is determined to be worth less than a predetermined value as set forth in the SV Policy, then the SV Policy issuer pays the owner the difference between the amount covered by the SV Policy and the then-current value, assuming that the owner has satisfied the terms and conditions of the SV Policy. In another aspect, a life insurance policy owner enters into an agreement (“Lifegain Agreement”) with a third party (“Lifegain Provider”) to protect against the possibility that the life insurance policy will lose value.

Abstract: A loan is secured by insurance policy collateral between a lender, borrower with the insurance policy, and an intermediary. The intermediary establishes a securities account and holds the insurance policy, which designates the borrower as the beneficial owner and the intermediary as the record owner. The borrower disburses the loan proceeds to the borrower. In the event the lender notifies the intermediary of a default, the intermediary is obligated to modify the insurance policy by designating the lender as the beneficial owner of the policy, thereby enabling the lender control the policy. The lender, for example, may make premium payments upon the policy, or order the intermediary to sell the policy.

Abstract: A method and system for structuring a life settlement with a paid-up policy transaction. An existing insurance policy holder exchanges an existing insurance policy for a paid-up insurance policy or life insurance group certificate purchased by a buyer on a secondary market. The policy could also exchange their policy for being named as a beneficiary of a second insurance policy purchased by a buyer on a secondary market.