Abstract: A funding system for post retirement benefits is provided that includes implementing first and second life insurance policies each of which pays a benefit. The owner enters into said first and second life insurance policies wherein the first insurance policy provides a benefit for that period of time that corresponds to the pre-retirement of an employee and the second life insurance policy pays a benefit only during that period that corresponds to the post retirement period of that employee. The first and second life insurance policies are structured such that the second policy expires upon death of the insured. The owner is not required to accrue any liability for the death benefit of the insured. Payments are effected of said first and second life insurance policies in said first period.