Method of providing insurance

• US 8,271,301 B1
• Filed: 06/01/2007
• Issued: 09/18/2012
• Est. Priority Date: 06/02/2006
• Status: Active Grant

• Current Assignee: Teachers Insurance and Annuity Association (TIAA Board of Governors)
• Original Assignee: Teachers Insurance and Annuity Association (TIAA Board of Governors)
• Inventors: Nordyke, Craig K., Benham, Bret
• Primary Examiner(s): Rosen, Elizabeth
• Application Number:
  US11/757,284
• Time in Patent Office: 1,936 Days
• Field of Search: 705/4, 705/35
• US Class Current: 705/4
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

This disclosure details the implementation of methods for providing a permanent life insurance policy, such as a universal life or variable universal life insurance policy, that may provide a level cost of insurance and may be marketed to clients of an asset manager. A need exists for a life insurance policy that provides level cost of insurance rates for a specific duration, while providing a death benefit and a cash value. The instant invention provides a method and an insurance policy that addresses these and other issues. In some embodiments, the level cost of insurance rate for a universal or variable universal life insurance policy may be provided for a fixed period of time and determined based on the corresponding cost of insurance rate for a comparable term life insurance policy having a term substantially similar to that fixed period of time. In further embodiments, the asset manager may receive compensation for advising the client based on the total value of assets in the insurance policy.

Claims

1. A processor-implemented method for providing life method comprising:

receiving a client application for a universal life insurance policy, the client application including at least a client eligibility criteria profile corresponding to a client;

receiving a level cost of insurance duration specification;

determining by the processor a level cost of insurance charge for a time period specified by the level cost of insurance duration specification, the level cost of insurance charge based at least in part on the level cost of insurance duration specification and a cost of insurance rate for a term life insurance policy available to the client based on the client application;

generating a level cost of insurance universal life insurance policy having the level cost of insurance charge provided for the level cost of insurance duration specification, wherein an amount equal to the level cost of insurance charge is extractable at least in part from a cash value of the policy, the cash value of the policy being funded at least in part by premium payments, wherein the level cost of insurance charge is distinguishable from a premium; and

providing the level cost of insurance universal life insurance policy to the client.

2. The method of claim 1, wherein the level cost of insurance charge is further based on the time value of money.

3. The method of claim 1, wherein the level cost of insurance charge is further based on persistency differences given an increasing cost versus a level cost.

4. The method of claim 1, wherein the level cost of insurance charge is further based on reserve impacts of having additional funds sooner to pay for future insurance charges.

5. The method of claim 1, wherein the level cost of insurance universal life insurance policy is a level cost of insurance variable universal life insurance policy.

6. The method of claim 5, further comprising:

receiving a portfolio allocation specification from the client, the portfolio allocation specification specifying the composition of a client investment portfolio.

7. The method of claim 6, wherein the client investment portfolio is managed by an asset manager.

8. The method of claim 7, wherein management fees paid to the asset manager are based on a total value of assets managed.

9. The method of claim 8, wherein management fees are equal to a fixed percentage of the total value of assets managed.

10. The method of claim 8, wherein management fees are withdrawn from a policy cash value.

11. The method of claim 8, wherein management fees are paid directly by the client.

12. The method of claim 8, wherein management fees are paid from insurance company fees.

13. The method of claim 7, wherein the asset manager is selected from a list of preferred asset managers provided by an insurance company offering the variable universal life insurance policy.

14. The method of claim 5, wherein the level cost of insurance variable universal life insurance policy is a private placement policy.

15. The method of claim 1, wherein the client is an employer and the level cost of insurance universal life insurance policy is a group universal life insurance policy or a group rating for a composite of individual policies.

16. The method of claim 15, wherein the group universal life insurance policy is a group variable universal life insurance policy or a group rating for a composite of individual policies.

17. The method of claim 15, wherein coverage under the group universal life insurance policy is provided to employees of the employer as an employment benefit.

18. The method of claim 15, wherein the group universal life insurance policy is configured to provide retirement benefits.

19. The method of claim 1, wherein the level cost of insurance universal life insurance policy comprises a joint universal life insurance policy.

20. The method of claim 19, wherein the joint universal life insurance policy includes a first to die benefit.

21. The method of claim 19, wherein the joint universal life insurance policy includes a last to die benefit.

22. The method of claim 19, wherein the joint universal life insurance policy comprises a joint variable universal life insurance policy.

23. The method of claim 22, wherein the joint variable universal life insurance policy includes a first to die benefit.

24. The method of claim 22, wherein the joint variable universal life insurance policy includes a last to die benefit.

25. The method of claim 22, wherein an investment portfolio associated with the joint variable universal life insurance policy is managed by an asset manager.

26. The method of claim 25, wherein management fees paid to the asset manager are based on a total value of assets managed.

27. The method of claim 26, wherein management fees are equal to a fixed percentage of the total value of assets managed.

28. The method of claim 25, wherein management fees are withdrawn from a policy cash value.

29. The method of claim 25, wherein management fees are paid directly by the client.

30. The method of claim 25, wherein management fees are paid from insurance company fees.

31. The method of claim 1, wherein generating a level cost of insurance universal life insurance policy further comprises updating an existing universal life insurance policy with a level cost of insurance endorsement.

32. The method of claim 1, wherein the premium payments variable.

33. A system to provide life insurance, comprising:

a memory;

a processor disposed in communication with said memory, and configured to issue a plurality of processing instructions stored in the memory, wherein the instructions issue signals to;

receive a client application for a universal life insurance policy, the client application including at least a client eligibility criteria profile corresponding to a client;

receive a level cost of insurance duration specification;

determine a level cost of insurance charge for a time period specified by the level cost of insurance duration specification, the level cost of insurance charge based at least in part on the level cost of insurance duration specification and a cost of insurance rate for a term life insurance policy available to the client based on the client application;

generate a level cost of insurance universal life insurance policy having the level cost of insurance charge provided for the level cost of insurance duration specification, wherein an amount equal to the level cost of insurance charge is extractable at least in part from a cash value of the policy, the cash value of the policy being funded at least in part by premium payments, wherein the level cost of insurance charge is distinguishable from a premium; and

provide the level cost of insurance universal life insurance policy to the client.

34. The system of claim 33, wherein the level cost of insurance charge is further based on the time value of money.

35. The system of claim 33, wherein the level cost of insurance charge is further based on persistency differences given an increasing cost versus a level cost.

36. The system of claim 33, wherein the level cost of insurance charge is further based on reserve impacts of having additional funds sooner to pay for future insurance charges.

37. The system of claim 33, wherein the level cost of insurance universal life insurance policy is a level cost of insurance variable universal life insurance policy.

38. The system of claim 37, further comprising:

receive a portfolio allocation specification from the client, the portfolio allocation specification specifying the composition of a client investment portfolio.

39. The system of claim 38, wherein the client investment portfolio is managed by an asset manager.

40. The system of claim 39, wherein management fees paid to the asset manager are based on a total value of assets managed.

41. The system of claim 40, wherein management fees are equal to a fixed percentage of the total value of assets managed.

42. The system of claim 40, wherein management fees are withdrawn from a policy cash value.

43. The system of claim 40, wherein management fees are paid directly by the client.

44. The system of claim 40, wherein management fees are paid from insurance company fees.

45. The system of claim 39, wherein the asset manager is selected from a list of preferred asset managers provided by an insurance company offering the level cost of insurance variable universal life insurance policy.

46. The system of claim 37, wherein the level cost of insurance variable universal life insurance policy is a private placement policy.

47. The system of claim 33, wherein the client is an employer and the level cost of insurance universal life insurance policy is a group universal life insurance policy.

48. The system of claim 47, wherein the group universal life insurance policy is a group variable universal life insurance policy.

49. The system of claim 47, wherein coverage under the group universal life insurance policy is provided to employees of the employer as an employment benefit.

50. The system of claim 47, wherein the group universal life insurance policy is configured to provide retirement benefits.

51. The system of claim 33, wherein the level cost of insurance universal life insurance policy comprises a joint universal life insurance policy.

52. The system of claim 51, wherein the joint universal life insurance policy includes a first to die benefit.

53. The system of claim 51, wherein the joint universal life insurance policy includes a last to die benefit.

54. The system of claim 51, wherein the joint universal life insurance policy comprises a joint variable universal life insurance policy.

55. The system of claim 54, wherein the joint variable universal life insurance policy includes a first to die benefit.

56. The system of claim 54, wherein the joint variable universal life insurance policy includes a last to die benefit.

57. The system of claim 54, wherein an investment portfolio associated with the joint variable universal life insurance policy is managed by an asset manager.

58. The system of claim 57, wherein management fees paid to the asset manager are based on a total value of assets managed.

59. The system of claim 58, wherein management fees are equal to a fixed percentage of the total value of assets managed.

60. The system of claim 57, wherein management fees are withdrawn from a policy cash value.

61. The system of claim 57, wherein management fees are paid directly by the client.

62. The system of claim 57, wherein management fees are paid from insurance company fees.