A sophisticated benefits financing and life insurance strategy that provides life insurance benefits for members with no cost to members, provides for funding of the strategy, and potentially building excess funds after payment of benefits and repayment of debt for the benefit of current and future members. A welfare benefits trust is first established by a respective legal entity. A funding amount is then received, the amount of which is calculated based on stochastic actuarial models and modern financial theory to provide purchasing of life insurance and/or other benefits for respective members of the welfare benefits plan, of extension risk coverage, and the development of cash value attributable to each of the plan members as is actuarially determined to be appropriate. Upon the death of a plan member, the welfare benefits trust arranges for payment of the member benefit and repays the funding amount attributable to the deceased member, together with accrued interest. The welfare benefits trust retains the excess proceeds.