Method for determining an optimal and tailored lifetime income and death benefit package

• US 20070106589A1
• Filed: 11/10/2005
• Published: 05/10/2007
• Est. Priority Date: 11/10/2005
• Status: Abandoned Application

• Current Assignee: Financial Destiny
• Original Assignee: Financial Destiny
• Inventors: Schirripa, Felix
• Application Number:
  US11/271,605
• Publication Number:
  US 20070106589A1
• Time in Patent Office: Days
• US Class Current: 705/36.R
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

An annuitant is able to select and optimize the allocation of a premium for insurance coverage between lifetime income benefits for the annuitant and death benefits to the annuitant'"'"'s beneficiaries. A set of underwriting factors is established to provide the insurance coverage and value both the lifetime income to the annuitant and the death benefits payable to the beneficiaries. These factors include anticipated investment returns on the premium paid for the coverage, and which are used for both the income and death benefit components of the coverage. The annuitant uses these to derive a combination of lifetime income for the annuitant and death benefits available to the annuitant'"'"'s beneficiaries. To do so, the annuitant inputs personal information including minimum dollar death benefit acceptable to the annuitant if the annuitant'"'"'s death occurred immediately after the issue of the coverage, and the minimum death benefit to the designee if the annuitant'"'"'s death occurs on or after some future date. This generates a solution showing the dollar death benefits payable in a lump sum to the beneficiaries at various possible dates of death into the future, as well as the corresponding lifetime income available for the annuitant.

Claims

1. In a method for allowing an annuitant to select and optimize the allocation of a premium for insurance coverage between lifetime income benefits for the annuitant and death benefits to the annuitant'"'"'s beneficiaries, the steps comprising:

(a) establishing a set of underwriting factors to provide insurance coverage and value both the lifetime income to the annuitant and the death benefits payable to the beneficiaries including, but not limited to, mortality rates, anticipated investment returns on the premium paid for the coverage, and administrative expenses, said set of factors being used for both the income and death benefit components of the coverage;

(b) using said underwriting factors to derive a combination of lifetime income for the annuitant and death benefits available to the annuitant'"'"'s beneficiaries by inputting the information selected from the group comprising date of birth or age of the annuitant, gender, premium payment, minimum dollar death benefit acceptable to the annuitant if the annuitant'"'"'s death occurred immediately after the issue of the coverage, and the minimum death benefit to the designee if the annuitant'"'"'s death occurs on or after some future date; and

(c) generating a solution showing the dollar death benefits payable in a lump sum to the beneficiaries at various possible dates of death into the future, as well as the corresponding lifetime income available for the annuitant.

2. The method for allowing an annuitant to select and optimize the allocation of a premium between lifetime benefits and death benefits in accordance with claim 1 including repeating steps (b) and (c) until a preferred balance between income and death benefits is obtained.

3. The method for allowing an annuitant to select and optimize the allocation of a premium between lifetime benefits and death benefits in accordance with claim 1 including the step of issuing insurance coverage using the factors and benefits selected by the annuitant.

4. The method for allowing an annuitant to select and optimize the allocation of a premium between lifetime benefits and death benefits in accordance with claim 3 wherein said coverage specifies the lifetime income and death benefit values inside the annuity and guaranteeing those payments to the annuitant and the death benefits to the beneficiaries.

5. The method for allowing an annuitant to select and optimize the allocation of a premium between lifetime benefits and death benefits in accordance with claim 1 including the step of adjusting the amount of the retirement income benefit upwardly at defined points during the term of the coverage and concurrently reducing the death benefit.

6. The method for allowing an annuitant to select and optimize the allocation of a premium between lifetime benefits and death benefits in accordance with claim 1 wherein the annuitant may change the premium allocated for the coverages and thereby the benefits.