Computer Method and System for Administering Investment Account

• US 20100191548A1
• Filed: 01/27/2010
• Published: 07/29/2010
• Est. Priority Date: 01/27/2009
• Status: Abandoned Application

• Current Assignee: Lincoln National Life Insurance Company (Lincoln National Corporation)
• Original Assignee: Lincoln National Life Insurance Company (Lincoln National Corporation)
• Inventors: Doherty, Mark S., Herr, Daniel P., Genovese, Kimberly A.
• Application Number:
  US12/694,585
• Publication Number:
  US 20100191548A1
• Time in Patent Office: Days
• US Class Current: 705/4
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A computerized method for administering an investment account having an income or withdrawal guarantee and long term care guarantee includes the steps of establishing an investment account having an account balance, allocating a first portion of the account balance to fund a periodic long term care benefit having a long term care benefit guarantee, allocating a second portion of the account to fund a periodic income or withdrawal benefit having an income or withdrawal benefit guarantee, determining an amount of a periodic long term care benefit available for payment of a long term care benefit claims under the long term care benefit guarantee, and determining an amount of a periodic income or withdrawal benefit available for distribution under the income or withdrawal benefit guarantee. The long term care benefit guarantee may include an acceleration of benefits guarantee and an extension of benefits guarantee. A computer system which includes a processor and a program for causing the processor to perform certain steps is also disclosed.

Claims

1. A computerized method for administering an investment account having an income or withdrawal guarantee and a long term care guarantee, comprising the steps of:

establishing an investment account having an account balance;

using a computer,

allocating a first portion of the account balance to fund a long term care benefit having a long term care benefit guarantee;

allocating a second portion of the account balance to fund an income or withdrawal benefit having an income or withdrawal benefit guarantee;

determining an amount of a periodic long term care benefit available for payment of long term care benefit claims under the long term care benefit guarantee; and

determining an amount of a periodic income or withdrawal benefit available for distribution under the income or withdrawal benefit guarantee.

2. The computerized method of claim 1, further comprising the step of determining a total amount available for payment of long term care benefit claims under the long term care benefit guarantee.

3. The computerized method of claim 2, further comprising the step of adjusting one or both of the periodic amount and the total amount available for payment of long term care benefit claims under the long term care benefit guarantee to reflect one or more of:

a) an amount of an allowable claim; and

b) investment results attributable to the first portion of the account balance.

4. The computerized method of claim 1, wherein said long term care benefit guarantee comprises a long term care acceleration of benefits guarantee.

5. The computerized method of claim 4, further comprising the step of determining a total amount available for payment of long term care benefit claims under the long term care acceleration of benefits guarantee.

6. The computerized method of claim 5, wherein the amount available for payment of long term care benefit claims under the long term care acceleration of benefits guarantee is initially set equal to, or substantially equal to, an amount of the first portion of the account balance.

7. The computerized method of claim 5, further comprising the step of periodically adjusting the amount available for payment of long term care benefit claims under the long term care acceleration of benefits guarantee to reflect one or more of:

a) an amount of an allowable claim paid under the long term care acceleration of benefits guarantee; and

b) investment results attributable to the first portion of the account balance.

8. The computerized method of claim 4, wherein said long term care benefit guarantee comprises a long term care extension of benefits guarantee.

9. The computerized method of claim 8, wherein an amount available for payment of long term care benefit claims under the long term care extension of benefits guarantee is equal to the amount available for payment of long term care benefit claims under the long term care acceleration of benefits guarantee multiplied by a positive numerical factor.

10. The computerized method of claim 9, wherein said factor is either one or two.

11. The computerized method of claim 8, further comprising the step of adjusting the total amount available for payment of long term care benefit claims under the long term care extension of benefits guarantee to reflect an amount of an allowable claim paid under the long term care extension of benefits guarantee.

12. The computerized method of claim 8, further comprising the step of adjusting the account balance to reflect a fee associated with the long term care benefit guarantee.

13. The computerized method of claim 8, further comprising the step of determining, in response to a long term care benefit claim, an amount of a long term care benefit payment.

14. The computerized method of claim 13, wherein the step of determining, in response to a long term care benefit claim, an amount of a long term care benefit payment comprises the step of comparing the benefit payment amount to the amount of a periodic long term care benefit available for payment of claims under the long term care benefit guarantee.

15. The computerized method of claim 13, further comprising the steps of determining whether the amount of the long term care benefit payment is payable under the acceleration of benefits guarantee or the extension of benefits guarantee, and adjusting the account balance of the investment account to reflect payment if the amount is payable under the long term care acceleration of benefits guarantee.

16. The computerized method of claim 2, further comprising the steps of allocating growth in the investment account to the first portion of the account balance, and increasing the amount available for payment of long term care benefit claims under the long term care benefit guarantee.

17. The computerized method of claim 2, further comprising the steps of allocating a first portion of growth in the investment account to the first portion of the account balance, and increasing the amount available for payment of long term care benefit claims under the long term care benefit guarantee.

18. The computerized method of claim 2, further comprising the step of adjusting one or both of the periodic amount and the total amount available for payment of long term care benefit claims under the long term care benefit guarantee by an adjustment factor.

19. The computerized method of claim 18, wherein said adjustment factor comprises an inflation factor, a cost of living factor, a fixed percentage rate factor, or a variable percentage rate factor.

20. The computerized method of claim 2, further comprising the steps of reallocating the account balance of the investment account to decrease the first portion of the account balance and to increase the second portion of the account balance, and decreasing one or both of the amount of a periodic long term care benefit, or the total amount, available for payment of long term care benefit claims under the long term care benefit guarantee.

21. The computerized method of claim 2, further comprising the steps of reallocating the account balance of the investment account to increase the first portion of the account balance and to decrease the second portion of the account balance, and increasing one or both of the amount of a periodic long term care benefit, or the total amount, available for payment of long term care benefit claims under the long term care benefit guarantee.

22. The computerized method of claim 1, wherein the first portion of the account balance is limited to a maximum of 50% of the account balance.

23. The computerized method of claim 1, further comprising the step of establishing a range comprising a minimum amount and a maximum amount of said first portion of the account balance.

24. The computerized method of claim 1, wherein the amount of a periodic long term care benefit available for payment of long term care benefit claims under the long term care benefit guarantee is fixed after a specified time period.

25. The computerized method of claim 24, wherein said specified time period is five years.

26. The computerized method of claim 1, wherein the amount of a periodic long term care benefit available for payment of long term care benefit claims under the long term care benefit guarantee is fixed after a specified time period, except for increases to reflect growth of the first portion of the account balance.

27. The computerized method of claim 1, further comprising the step of periodically determining an amount of an income or withdrawal benefit distribution.

28. The computerized method of claim 27, further comprising the step of adjusting the account balance of the investment account to reflect payment of the income or withdrawal benefit distribution.

29. The computerized method of claim 1, further comprising the steps of attributing growth in the investment account to the second portion of the account balance, and increasing the amount of a periodic income or withdrawal benefit available for distribution under the income or withdrawal benefit guarantee.

30. The computerized method of claim 1, further comprising the step of adjusting the amount of a periodic income or withdrawal benefit available for distribution under the income or withdrawal benefit guarantee by an adjustment factor.

31. The computerized method of claim 30, wherein said adjustment factor comprises an inflation factor, a cost of living factor, a fixed percentage rate factor, or a variable percentage rate factor.

32. The computerized method of claim 1, wherein the periodic income or withdrawal benefit having an income or withdrawal benefit guarantee is a lifetime benefit.

33. The computerized method of claim 1, further comprising the steps of reallocating the account balance of the investment fund to decrease the first portion of the account balance and to increase the second portion of the account balance, and increasing an amount of a periodic income or withdrawal benefit available for distribution under the income or withdrawal benefit guarantee.

34. The computerized method of claim 1, further comprising the steps of reallocating the account balance of the investment fund to increase the first portion of the account balance and to decrease the second portion of the account balance, and decreasing the amount of a periodic income or withdrawal benefit available for distribution under the income or withdrawal benefit guarantee.

35. The computerized method of claim 1, further comprising the steps of determining an amount of a distribution other than an income or withdrawal benefit distribution or a long term care benefit payment.

36. The computerized method of claim 35, further comprising the step of adjusting the amount of a periodic income or withdrawal benefit available for distribution under the income or withdrawal benefit guarantee in response to said distribution other than an income or withdrawal benefit distribution or a long term care benefit payment.

37. The computerized method of claim 35, further comprising the step of adjusting the amount of a periodic long term care benefit available for payment of long term care benefit claims under the long term care benefit guarantee in response to said distribution other than an income or withdrawal benefit distribution or a long term care benefit payment.

38. The computerized method of claim 1, further comprising the step of adjusting the account balance to reflect an additional deposit credited to the investment account.

39. The computerized method of claim 38, further comprising the step of adjusting one or both of the long term care benefit guarantee and the income or withdrawal benefit guarantee to reflect the additional deposit.

40. A computer system for administering an investment account having an income or withdrawal guarantee and a long term care guarantee, comprising:

a processor for performing calculations and processing data relating to an investment account having an account balance;

a storage element for storing data and an electronic record relating to the account;

a display device for displaying the electronic record;

an input device for inputting data relating to the account; and

a program executable by the processor to cause the processor to;

allocate a first portion of the account balance to fund a long term care benefit having a long term care benefit guarantee;

allocate a second portion of the account balance to fund an income or withdrawal benefit having an income or withdrawal benefit guarantee;

determine an amount of a periodic long term care benefit available for payment of long term care benefit claims under the long term care benefit guarantee; and

determine an amount of a periodic income or withdrawal benefit available for distribution under the income or withdrawal benefit guarantee.

41. The computer system of claim 40, wherein the program causes the processor to determine a total amount available for payment of long term care benefit claims under the long term care benefit guarantee.

42. The computer system of claim 41, wherein the program causes the processor to adjust one or both of the periodic amount and the total amount available for payment of long term care benefit claims under the long teen care benefit guarantee to reflect one or more of:

a) an amount of an allowable claim; and

b) investment results attributable to the first portion of the account balance.

43. The computer system of claim 40, wherein said long term care benefit guarantee comprises a long term care acceleration of benefits guarantee.

44. The computer system of claim 43, wherein the program causes the processor to determine a total amount available for payment of long term care benefit claims under the long term care acceleration of benefits guarantee.

45. The computer system of claim 44, wherein the amount available for payment of long term care benefit claims under the long term care acceleration of benefits guarantee is initially set equal to, or substantially equal to, an amount of the first portion of the account balance.

46. The computer system of claim 44, wherein the program causes the processor to periodically adjust the amount available for payment of long term care benefit claims under the long term care acceleration of benefits guarantee to reflect one or more of:

a) an amount of an allowable claim paid under the long term care acceleration of benefits guarantee; and

b) investment results attributable to the first portion of the account balance.

47. The computer system of claim 43, wherein said long term care benefit guarantee comprises a long term care extension of benefits guarantee.

48. The computer system of claim 47, wherein an amount available for payment of long term care benefit claims under the long term care extension of benefits guarantee is equal to the amount available for payment of long term care benefit claims under the long term care acceleration of benefits guarantee multiplied by a positive numerical factor.

49. The computer system of claim 48, wherein said factor is either one or two.

50. The computer system of claim 47, wherein the program causes the processor to adjust the total amount available for payment of long teen care benefit claims under the long term care extension of benefits guarantee to reflect an amount of an allowable claim paid under the long term care extension of benefits guarantee.

51. The computer system of claim 47, wherein the program causes the processor to adjust the account balance to reflect a fee associated with the long term care benefit guarantee.

52. The computer system of claim 47, wherein the program causes the processor to determine, in response to a long term care benefit claim, an amount of a long term care benefit payment.

53. The computer system of claim 52, wherein the program causes the processor to compare the benefit payment amount to the amount of a periodic long term care benefit available for payment of claims under the long term care benefit guarantee.

54. The computer system of claim 52, wherein the program causes the processor to determine whether the amount of the long term care benefit payment is payable under the acceleration of benefits guarantee or the extension of benefits guarantee, and adjust the account balance of the investment account to reflect payment of the long term care benefit claim under the long term care acceleration of benefits guarantee.

55. The computer system of claim 41, wherein the program causes the processor to allocate growth in the investment account to the first portion of the account balance, and increase the amount available for payment of long term care benefit claims under the long term care benefit guarantee.

56. The computer system of claim 41, wherein the program causes the processor to allocate a first portion of growth in the investment account to the first portion of the account balance, and increase the amount available for payment of long term care benefit claims under the long term care benefit guarantee.

57. The computer system of claim 41, wherein the program causes the processor to adjust one or both of the periodic amount and the total amount available for payment of long term care benefit claims under the long term care benefit guarantee by an adjustment factor.

58. The computer system of claim 57, wherein said adjustment factor comprises an inflation factor, a cost of living factor, a fixed percentage rate factor, or a variable percentage rate factor.

59. The computer system of claim 41, wherein the program causes the processor to reallocate the account balance of the investment account to decrease the first portion of the account balance and to increase the second portion of the account balance, and decrease one or both of the amount of a periodic long term care benefit, or the total amount, available for payment of long term care benefit claims under the long term care benefit guarantee.

60. The computer system of claim 41, wherein the program causes the processor to reallocate the account balance of the investment account to increase the first portion of the account balance and to decrease the second portion of the account balance, and increase one or both of the amount of a periodic long term care benefit, or the total amount, available for payment of long term care benefit claims under the long term care benefit guarantee.

61. The computer system of claim 40, wherein the first portion of the account balance is limited to a maximum of 50% of the account balance.

62. The computer system of claim 40, wherein the program causes the processor to establish a range comprising a minimum amount and a maximum amount of said first portion of the account balance.

63. The computer system of claim 40, wherein the amount of a periodic long term care benefit available for payment of long term care benefit claims under the long term care benefit guarantee is fixed after a specified time period.

64. The computer system of claim 63, wherein said specified time period is five years.

65. The computer system of claim 63, wherein the amount of a periodic long term care benefit available for payment of long term care benefit claims under the long term care benefit guarantee is fixed after a specified time period, except for increases to reflect growth of the first portion of the account balance.

66. The computer system of claim 40, wherein the program causes the processor to periodically determine an amount of an income or withdrawal benefit distribution.

67. The computer system of claim 66, wherein the program causes the processor to adjust the account balance of the investment account to reflect payment of the income or withdrawal benefit distribution.

68. The computer system of claim 40, wherein the program causes the processor to attribute growth in the investment account to the second portion of the account balance, and increase the amount of a periodic income or withdrawal benefit available for distribution under the income or withdrawal benefit guarantee.

69. The computer system of claim 40, wherein the program causes the processor to adjust the amount of a periodic income or withdrawal benefit available for distribution under the income or withdrawal benefit guarantee by an adjustment factor.

70. The computer system of claim 69, wherein said adjustment factor comprises an inflation factor, a cost of living factor, a fixed percentage rate factor, or a variable percentage rate factor.

71. The computer system of claim 40, wherein the periodic income or withdrawal benefit having an income or withdrawal benefit guarantee is a lifetime benefit.

72. The computer system of claim 40, wherein the program causes the processor to reallocate the account balance of the investment fund to decrease the first portion of the account balance and to increase the second portion of the account balance, and increase an amount of a periodic income or withdrawal benefit available for distribution under the income or withdrawal benefit guarantee.

73. The computer system of claim 40, wherein the program causes the processor to reallocate the account balance of the investment fund to increase the first portion of the account balance and to decrease the second portion of the account balance, and decrease the amount of a periodic income or withdrawal benefit available for distribution under the income or withdrawal benefit guarantee.

74. The computer system of claim 40, wherein the program causes the processor to determine an amount of a distribution other than an income or withdrawal benefit distribution or a long term care benefit payment.

75. The computer system of claim 74, wherein the program causes the processor to adjust the amount of a periodic income or withdrawal benefit available for distribution under the income or withdrawal benefit guarantee in response to said distribution other than an income or withdrawal benefit distribution or a long term care benefit payment.

76. The computer method of claim 74, wherein the program causes the processor to adjust the amount of a periodic long term care benefit available for payment of long term care benefit claims under the long term care benefit guarantee in response to said distribution other than an income or withdrawal benefit distribution or a long term care benefit payment.

77. The computer system of claim 40, wherein the program causes the processor to adjust the account balance to reflect an additional deposit credited to the investment account.

78. The computer system of claim 77, wherein the program causes the processor to adjust one or both of the long term care benefit guarantee and the income or withdrawal benefit guarantee to reflect the additional deposit.

79. A non-transitory computer readable storage medium having executable program code stored thereon for causing the computer to perform steps for processing and administering an investment account having an account balance and having an income or withdrawal guarantee and a long term care guarantee, the steps comprising:

allocating a first portion of the account balance to fund a long term care benefit having a long term care benefit guarantee;

allocating a second portion of the account balance to fund an income or withdrawal benefit having an income or withdrawal benefit guarantee;

determining an amount of a periodic long term care benefit available for payment of long term care benefit claims under the long term care benefit guarantee; and

determining an amount of a periodic income or withdrawal benefit available for distribution under the income or withdrawal benefit guarantee.

80. The computer-readable medium of claim 79, wherein said long term care benefit guarantee comprises a long term care acceleration of benefits guarantee.

81. The computer-readable medium of claim 80, further comprising the step of determining a total amount available for payment of long term care benefit claims under the long term care acceleration of benefits guarantee.

82. The computer-readable medium of claim 81, wherein the amount available for payment of long term care benefit claims under the long term care acceleration of benefits guarantee is based on an amount of the first portion of the account balance.

83. The computer-readable medium of claim 80, wherein said amount of a periodic long term care benefit available for payment of long term care benefit claims under the long term care benefit guarantee comprises an amount of a periodic long term care benefit available for payment of long term benefit claims under the long term care acceleration of benefits guarantee.

84. The computer-readable medium of claim 83, wherein said amount of a periodic long term care benefit available under the long term care acceleration of benefits guarantee is determined by dividing a total amount available for payment of long term care benefit claims under the long term care acceleration of benefits guarantee by one or more periods to determine the amount of the periodic benefit for at least a predetermined number of initial benefit periods.

85. The computer-readable medium of claim 84, wherein after the predetermined number of benefit periods, the amount of the periodic long term care benefit available for payment of long term care benefit claims under the long term care acceleration of benefits guarantee is fixed.

86. The computer-readable medium of claim 79, wherein said long term care benefit guarantee comprises a long term care extension of benefits guarantee.

87. The computer-readable medium of claim 86, further comprising the step of determining a fee associated with the long term care extension of benefits guarantee.

88. The computer-readable medium of claim 79, wherein an amount available for payment of long term care benefit claims under the long term care extension of benefits guarantee is based on an amount of the first portion of the account balance.