Lump sum disability benefit rider

• US 8,738,406 B1
• Filed: 05/09/2012
• Issued: 05/27/2014
• Est. Priority Date: 05/12/2011
• Status: Active Grant

• Current Assignee: Berkshire Life Insurance of America
• Original Assignee: Berkshire Life Insurance of America
• Inventors: Hazzard, Lawrence S.
• Primary Examiner(s): Borlinghaus, Jason M
• Application Number:
  US13/467,777
• Time in Patent Office: 748 Days
• Field of Search: None
• US Class Current: 705/4
• CPC Class Codes: G06Q 10/10 Office automation; Time management
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A system, a computer implemented method and a computer readable medium for providing a lump sum disability benefit to a loss payee is provided. Payment of the lump sum disability benefit is conditioned upon the fulfillment of two or more requirements and is paid upon the later of two predetermined events.

Claims

1. A computer implemented method for providing a lump sum disability benefit to a loss payee, the computer implemented method comprising:

generating, on a computer, a disability insurance policy that provides insurance coverage for the loss payee upon the occurrence of one or more disabilities defined therein; and

wherein the disability insurance policy further defines an expiration date for the insurance policy, a date upon which benefits end under the insurance policy and a qualifying amount;

determining, by the computer, an occurrence of one or more disabilities defined in the disability insurance policy;

making a plurality of contributing payments to the loss payee upon the occurrence of one or more disabilities;

determining, by the computer, that two or more requirements separate from the occurrence of the one or more disabilities, have been satisfied;

wherein one of the two or more requirements is the sum of the plurality of contributing payments being greater than or equal to the qualifying amount;

calculating, by the computer, the lump sum disability benefit equal to a sum of the plurality of contributing payments multiplied by a predetermined factor;

producing, by the computer, a lump sum disability benefit to the loss payee upon the later of the expiration date of the policy or the date upon which benefits end under the insurance policy.

2. The method according to claim 1, wherein one of the two or more requirements comprise:

both the disability insurance policy and a lump sum disability rider being in force on the expiration date of the disability insurance policy.

3. The method according to claim 1, wherein the contributing payments comprise payments made under a total disability benefit provision and a residual disability benefit provision of the disability insurance policy.

4. The method according to claim 3, wherein the contributing payments exclude any payments made under a capital sum benefit provision, an occupational rehabilitation benefit provision, and a catastrophic disability benefit provision of the disability insurance policy.

5. The method according to claim 1, wherein the predetermined factor is 35%.

6. The method according to claim 1, wherein the disability insurance policy comprises a lump sum disability rider and the lump sum disability rider terminates upon the first of the following events:

payment of the lump sum disability benefit;

non-payment of a premium for the lump sum disability rider for more than a predetermined number of days;

written request by a customer to terminate the lump sum disability rider; and

termination of the disability insurance policy.

14. The method according to claim 1, wherein the predetermined factor is 35%.

7. A computer implemented method for providing a lump sum disability benefit to a loss payee, the computer implemented method comprising:

generating, on a computer, a disability insurance policy comprising a lump sum disability rider that provides insurance coverage for the loss payee upon the occurrence of one or more disabilities defined therein; and

wherein the disability insurance policy further defines a qualifying amount;

determining, by the computer, an occurrence of one or more disabilities defined in the disability insurance policy;

making a plurality of contributing payments to the loss payee upon the occurrence of one or more disabilities;

determining, by the computer, that two or more requirements separate from the occurrence of the one or more disabilities, have been satisfied;

wherein one of the two or more requirements is the sum of the plurality of contributing payments being greater than or equal to the qualifying amount; and

producing, by the computer, a lump sum disability benefit payment to the loss payee upon the later of two predetermined events.

8. The method according to claim 7, wherein the two or more requirements do not include the occurrence of the one or more disabilities defined in the disability insurance policy.

9. The method according to claim 7, wherein one of the two or more requirements comprise:

both the disability insurance policy and a lump sum disability rider being in force on the expiration date of the disability insurance policy.

10. The method according to claim 7, wherein the contributing payments comprise payments made under a total disability benefit provision and a residual disability benefit provision of the disability insurance policy.

11. The method according to claim 10, wherein the contributing payment excludes any payments made under a capital sum benefit provision, an occupational rehabilitation benefit provision, and a catastrophic disability benefit provision of the disability insurance policy.

12. The method according to claim 7, wherein the two predetermined events include:

an expiration date of the disability insurance policy, wherein the expiration date is defined in the disability insurance policy; and

an end of a benefit period, wherein the benefit period is defined in the disability insurance policy.

13. The method according to claim 7, wherein the lump sum disability benefit is equal to the sum of the plurality of contributing payments multiplied by a predetermined factor.

15. A non-transitory computer readable medium comprising a computer program for providing a lump sum disability benefit to a loss payee, which when executed on a computer, cause the computer to:

determine that a disability insurance policy and a lump sum disability benefit rider are in force on an expiration date of the disability insurance policy, wherein the expiration date is defined in the disability insurance policy;

determine a sum of a plurality of contributing payments paid to a loss payee under the disability insurance policy;

determine that the sum of the plurality of contributing payments is greater than or equal to a qualifying amount, wherein the qualifying amount is defined in the disability insurance policy; and

generate and forward a lump sum disability benefit payment to the loss payee upon the later of two predetermined events.

16. The computer readable medium according to claim 15, wherein the two predetermined events include:

the expiration date of the disability insurance policy; and

an end of a benefit period, wherein the benefit period is defined in the disability insurance policy.

17. The computer readable medium according to claim 15, wherein the lump sum disability benefit payment is equal to the sum of the contributing payments multiplied by a predetermined factor.

18. The computer readable medium according to claim 17, wherein the predetermined factor is about 35%.

19. The computer readable medium according to claim 15, wherein the contributing payments comprise payments made under a total disability benefit provision and a residual disability benefit provision of the disability insurance policy.

20. The method according to claim 19, wherein the contributing payments exclude any payments made under a capital sum benefit provision, an occupational rehabilitation benefit provision, and a catastrophic disability benefit provision of the disability insurance policy.