System and method for generating and providing a simplified voluntary disability product

• US 8,543,426 B2
• Filed: 12/21/2007
• Issued: 09/24/2013
• Est. Priority Date: 10/26/2007
• Status: Active Grant

• Current Assignee: Hartford Fire Insurance Company (The Hartford Financial Services Group, Inc.)
• Original Assignee: Hartford Fire Insurance Company (The Hartford Financial Services Group, Inc.)
• Inventors: Belliveau, Mark P., Campbell, Barbara S., Crandall, Joan, Duncan, Susan, Johnson, Kim, Minchoff, Lori A., Perez, Will, Roberts, Alyce, Vujs, Christine T.
• Primary Examiner(s): Oyebisi, Ojo O
• Application Number:
  US12/004,886
• Publication Number:
  US 20090112632A1
• Time in Patent Office: 2,104 Days
• Field of Search: 705/35, 705/4
• US Class Current: 705/4
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

Disclosed is a novel disability insurance product that provides a benefit to the purchaser. The insurance product comprises a disability insurance product which offers coverage for a predetermined limited period of time. If at the end of the predetermined period of time the insured individual is still disabled according to the terms of the insurance product, the insurance provider will pay a lump sum benefit.

Claims

1. A system for providing a disability insurance product comprising:

a storage device having data relating to an insurance product provided under an insurance policy, and periodic payments provided to an insured individual;

a processing module operatively coupled to the storage device, said processor configured to read said data relating to an insurance product, and periodic payments provided to the insured individual, the storage device storing modules utilized by the processor, the modules comprising;

a generating module for generating an insurance product which provides for;

periodic payments in substantially equal amounts to an insured individual in the event of receipt of data indicative of either a disability of the insured individual or a diagnosis of the individual with an illness specified in the policy-related data stored in the storage device, said periodic payments responsive to the disability of the insured individual continuing for a predetermined period of time, provided the insured individual remains disabled and said periodic payments responsive to the data indicative of the diagnosis continuing for the predetermined term provided the insured individual remains living; and

a payment on a periodic basis for a first medical opinion as to a diagnosis of the illnesses specified in the policy-related data stored in the storage device; and

a payment module for making the periodic payments to the insured, wherein the payment module is further configured to make a transition payment in a finite amount equal to a multiple of the amount of one of the periodic payments to the insured individual responsive to receipt of data indicative of the disability of the insured individual upon the expiration of the predetermined period of time for said periodic payments, provided that the insured remains disabled at said expiry of said predetermined period of time and to make the transition payment to the insured individual responsive to receipt of data indicative of the diagnosis upon the expiration of the predetermined period of time, provided that the insured individual remains living.

2. The system of claim 1 wherein the modules further comprise:

a beneficiary module for choosing a beneficiary to receive payment from the insurance provider in the instance of the insured individual'"'"'s death during the predetermined term.

17. The system of claim 1 wherein the disability is at least one of the following:

dismemberment, loss of hearing, and loss of sight.

18. The system of claim 1 wherein the disability is an event rendering the individual unable to perform essential duties of the individual'"'"'s occupation and the earnings of the insured individual are less than a given percentage of pre-disability earnings over a given time interval.

19. The system of claim 1 wherein the given percentage of pre-disability earnings is 80%.

20. The system of claim 1, wherein the multiple is at least three times the amount of the periodic payments.

21. The system of claim 20, wherein the predetermined period of time is at least two years.

22. The system of claim 1, wherein the data stored in the storage device is configured for denial of payment for a medical opinion as to any illness other than the illnesses specified in the policy-related data stored in the storage device.

23. The system of claim 22, wherein the illnesses specified in the policy-related data stored in the storage device comprise a malignancy characterized by uncontrolled and abnormal growth and spread of malignant cells in any part of the body, comprising Hodgkin'"'"'s Disease, leukemia, lymphoma, carcinoma, sarcoma and malignant tumor and excluding pre-cancerous conditions.

3. A computer implemented method for providing to an individual a disability insurance product comprising the steps of:

generating a disability insurance product contract using a generating module and storing data relating to the disability insurance product in a storage device;

providing coverage for at least one disability defined in the insurance product contract and for at least one illness defined in the insurance product contract in accordance with the data relating to the disability insurance product stored in the storage device;

making by a payment module in communication with the generating module periodic payments in substantially equal amounts to the insured individual in the instance of the at least one disability defined in the stored data relating to the insurance product contract, said periodic payments continuing for a predetermined period of time provided the insured individual remains disabled;

making payment by the payment module on a periodic basis for a first medical opinion as to a diagnosis of the at least one illness defined in the stored data relating to the insurance product contract;

making periodic payments by the payment module to the insured individual in the instance of the at least one illness defined in the stored data relating to the insurance product contract, said periodic payments continuing for the predetermined period of time provided the insured individual remains living;

making a transition payment by the payment module in a finite amount equal to a multiple of the amount of one of the periodic payments upon the expiration of the predetermined period of time for said periodic payments responsive to the disability, provided that the insured individual remains disabled at said expiry of said predetermined period of time; and

making a transition payment by the payment module in a finite amount equal to a multiple of the amount of one of the periodic payments to the insured individual responsive to the diagnosis upon the expiration of the predetermined period of time, provided that the insured individual remains living.

4. The method of claim 3 wherein the periodic payments expire in the event of the death of the insured individual.

5. The method of claim 4 further comprising the step of:

choosing a beneficiary to receive payments from the insurance provider in the instance of the insured individual'"'"'s death.

6. A computer implemented method for providing an illness insurance product comprising the steps of:

generating an illness insurance product contract using a generating module and storing data relating to the illness insurance product contract in a data storage device;

providing coverage for at least one illness defined in the stored data relating to the insurance product contract;

making a payment by a payment module in communication with the generating module on a periodic basis for a first medical opinion as to a diagnosis of the at least one illness specified in the policy;

making periodic payments by the payment module in substantially equally amounts to an insured individual in the instance of data indicative of a diagnosis of the individual with the at least one illness defined in the insurance product contract related data, said periodic payments continuing for a predetermined period of time provided the insured individual remains ill with the illness; and

making a payment by the payment module of a predetermined single sum in a finite amount equal to a multiple of the amount of one of the periodic payments upon the expiration of the predetermined period of time for said periodic payments, provided that data is received indicative that the insured individual remains ill with the illness defined in the stored data relating to the insurance contract and living at said expiry of said predetermined period of time.

7. The method of claim 6, wherein the payment on a periodic basis for a first medical opinion is for an annual first opinion examination by a physician;

and further comprising providing coverage for a second opinion examination by another physician.

8. The method of claim 6 and further comprising the step of:

choosing a beneficiary to receive payments from the insurance provider in the instance of the insured individual'"'"'s death.

9. The method of claim 8 wherein the beneficiary receives the payment of a predetermined single sum as well as an additional sum in the instance of the insured individual'"'"'s death.

10. A system for providing an insurance product comprising:

a storage device having data relating to an insurance product, periodic payments provided to an individual in the event of diagnosis of the individual with an illness specified in an insurance product contract or disability of the individual, and a transition payment;

a processing module operatively coupled to the storage device, said processor configured to read said data relating to said insurance product, periodic payments provided to an insured individual in the event of diagnosis of the individual with an illness specified in the policy or disability of the individual, and a transition payment, the storage device storing modules utilized by the processor, the modules comprising;

a generating module for generating an insurance product contract which provides periodic payments of substantially equal amount to the insured individual in the event of an illness defined in the data relating to the insurance product contract and continuing for a predetermined period provided that the event of an illness under the data relating to the contract remains or in the event of receipt of data indicative of disability of the individual and continuing for the predetermined period and a payment on a periodic basis for a first medical opinion as to a diagnosis of the illness specified in the insurance contract; and

a payment module for determining periodic payments to said insured individual, determining a transition payment in a finite amount a multiple of the amount of the periodic payments payable upon the expiration of said periodic payments under the condition of receipt of data indicative that the insured individual remains disabled or that the event of an illness under the stored data relating to the contract remains at the expiry of said predetermined period, and outputting the determined payments.

11. The system of claim 10 wherein the illness is cancer.

12. The system of claim 10 wherein the transition payment is a predetermined single sum.

13. The system of claim 12 wherein the payment module provides for payment of the periodic payments and the transition payment to the insured individual.

14. The system of claim 10 wherein the periodic payments expire at death.

15. The system of claim 14 wherein the modules further comprise:

a beneficiary module for choosing a beneficiary to receive payments from said insurance provider in the instance of the insured individual'"'"'s death.

16. The system of claim 10 wherein the modules further comprise:

a dependent module for offering said insurance product to said individual'"'"'s dependents.