Managing a life insurance investment

• US 20040030625A1
• Filed: 08/15/2003
• Published: 02/12/2004
• Est. Priority Date: 08/07/2000
• Status: Active Grant

• Current Assignee: Discovery Life Limited (Discovery Limited)
• Original Assignee: Discovery Life Limited (Discovery Limited)
• Inventors: Mayers, Herschel Phillip, Rabson, Kenneth Steven, Gore, Adrian
• Granted Patent: US 8,306,899 B2
• Time in Patent Office: Days
• US Class Current: 705/36
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A method of managing an investment of a policyholder which corresponds to a sum assured is described. The invention has particular application to life insurance. The policyholder selects a basic sum assured, and a periodic basic premium corresponding to the basic sum assured is calculated. The basic sum assured is linked to one or more financial indices so that the value of the total sum assured increases or decreases with changes in the value of the indices. An additional premium is calculated based on the cost of the linking, and a composite periodic premium is calculated. By using derivative instruments, the policyholder'"'"'s investment corresponds to the actual sum assured from inception of the policy, compared with conventional schemes which involve the periodic investment of the policyholder'"'"'s contributions.

Claims

1. A method of managing an investment of a policyholder which corresponds to a sum assured, the method comprising:

defining a basic sum assured;

calculating a periodic basic premium corresponding to the basic sum assured;

selecting at least one predefined index and linking the basic sum assured to the selected index to define a total sum assured, so that the value of the total sum assured increases or decreases with changes in the value of the selected index or indices;

calculating an additional premium in accordance with predetermined factors relating to the cost of linking the basic sum assured to the selected index; and

combining the basic premium and the additional premium in a periodic composite premium.

2. A method according to claim 1 including defining a reference level below which the value of the total sum assured may not decrease, irrespective of the performance of the selected index.

3. A method according to claim 2 wherein the reference level is the basic sum assured.

4. A method according to any one of claims 1 to 3 including defining a reference index to which the value of the total sum assured is linked, the reference index being selected to counteract inflation, with the effect that the value of the total sum assured increases annually by a minimum amount related to the annual increase in the reference index.

5. A method according to claim 4 wherein the reference index is a consumer price index.

6. A method according to any one of claim 1 to 5 wherein the index to which the sum assured is linked is a stock market related index or a currency market index.

7. A method according to claim 6 wherein the stock market related index is selected from the group comprising the FTSE 100 index, the S&

P 500 index, the Nikkei 225 index, the ALSI 40 index, and other recognised stock market indices, and wherein the currency market index is selected from the group comprising a US dollar deposits index, a British pound deposits index, and other recognised currency market indices.

14. A method according to any one of claims 1 to 13 wherein the performance of the investment is related to a health index determined for the policyholder, the health index being calculated by comparing a plurality of test or measurement values of the policyholder to a set of predetermined reference values, the performance of the investment being adjusted according to the extent to which the test or measurement values differ from the reference values.

8. A method of managing an investment of a policyholder which corresponds to a sum assured, the method comprising:

recording a selection by the policyholder of a total sum assured;

calculating a periodic premium corresponding to the total sum assured;

recording a selection by the policyholder of at least one of a plurality of pre-defined future events;

associating a selected insured amount, less than the total sum assured, with each selected pre-defined future event; and

permitting, from time to time, the policyholder to draw from the fund an amount corresponding to the respective insured amount on occurrence of any of the pre-defined future events.

9. A method according to claim 8 wherein the pre-defined future events include full or partial disability, so-called “

dread diseases”

, infertility, and events effecting family members or children such as congenital birth defects or children'"'"'s dread diseases.

10. A method according to claim 8 or claim 9 wherein the selected insured amount associated with each pre-defined future event selected by the policyholder is unrelated to the costs of treatment of other costs associated with the event in question.

11. A method according to any one of claims 8 to 10 wherein the total sum assured is linked to one or more predefined financial indices.

12. A method according to claim 11 wherein the fund is linked to one or more of the FTSE 100, the S&

P 500, the Nikkei 225, the ALSI 40 or other recognised stock market indices, a US dollar deposits index, a British pound deposits index or other recognised currency market indices, or a selected combination thereof, with the effect that the value of the total sum assured increases or decreases with changes in the value of the selected index or indices.

13. A method according to any one of claims 8 to 12 wherein the total sum assured is linked to a reference index with the effect that the value of the total sum assured increases annually by a minimum amount related to the annual increase in the reference index.