Method of evaluating a permanent life insurance policy
First Claim
1. A method of evaluating a permanent life insurance policy comprising:
- obtaining a first policy illustration;
resolving an illustrated premium load value from the policy illustration;
resolving an illustrated fixed expense value from the first policy illustration;
resolving an illustrated cost of insurance value from the first policy illustration;
resolving an illustrated net amount at risk value from the first policy illustration;
establishing a first pricing policy value for the first policy illustration from the sum of the illustrated cost of insurance value, the illustrated premium load value, and the illustrated fixed expense value divided by the illustrated net amount at risk value; and
comparing the first pricing policy value with a second pricing policy value.
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Accused Products
Abstract
A method of evaluating a permanent life insurance policy including the steps of establishing a benchmark cost of insurance value, obtaining a policy illustration, resolving an illustrated cost of insurance value from the policy illustration, and comparing the benchmark cost of insurance value with the illustrated cost of insurance value. A matrix of mortality profiles may be established wherein the benchmark cost of insurance is adjusted in relation to the matrix. The matrix may include gender-based, lifestyle and pricing method risk values. Gender-based risk values reflect the differing mortality rates experienced between males and females over a lifetime. Lifestyle-based risk values may acknowledge dangerous activities such as tobacco use, job occupation and the like. Pricing method risk values are based on the statistical evidence that affluent individuals generally lead healthier lifestyles while also purchasing substantial policy values.
270 Citations
34 Claims
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1. A method of evaluating a permanent life insurance policy comprising:
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obtaining a first policy illustration;
resolving an illustrated premium load value from the policy illustration;
resolving an illustrated fixed expense value from the first policy illustration;
resolving an illustrated cost of insurance value from the first policy illustration;
resolving an illustrated net amount at risk value from the first policy illustration;
establishing a first pricing policy value for the first policy illustration from the sum of the illustrated cost of insurance value, the illustrated premium load value, and the illustrated fixed expense value divided by the illustrated net amount at risk value; and
comparing the first pricing policy value with a second pricing policy value. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17)
establishing a matrix of mortality profiles; and
adjusting the illustrated cost of insurance value according to the matrix.
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15. The method of claim 14 wherein the matrix comprises gender-based risk values.
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16. The method of claim 14 wherein the matrix comprises lifestyle-based risk values.
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17. The method of claim 14 wherein the matrix comprises pricing method risk values.
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18. A method of evaluating a permanent life insurance policy comprising:
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obtaining a first policy illustration;
resolving an illustrated premium load value from the policy illustration;
resolving an illustrated fixed expense value from the first policy illustration;
resolving an illustrated cost of insurance value from the first policy illustration;
resolving an illustrated fixed expense value from the first policy illustration;
establishing a calculation period;
resolving an illustrated net amount at risk value from the first policy illustration for each year in the calculation period;
dividing the sum of the illustrated net amount at risk for all the years in the calculation period by the count of years to establish an average net amount at risk establishing a first pricing policy value for the first policy illustration from the sum of the illustrated cost of insurance value, the illustrated premium load value, and the illustrated fixed expense value divided by the illustrated net amount at risk value; and
comparing the first pricing policy value with a second pricing policy value. - View Dependent Claims (19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34)
establishing a matrix of mortality profiles; and
adjusting the illustrated cost of insurance value according to the matrix.
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32. The method of claim 31 wherein the matrix comprises gender-based risk values.
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33. The method of claim 31 wherein the matrix comprises lifestyle-based risk values.
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34. The method of claim 31 wherein the matrix comprises pricing method risk values.
Specification