Systems and methods for providing a cash value adjustment to a life insurance policy

A computer implemented method to perform a cash value adjustment to an insurance policy issued by an insurer and owned by a policy owner, the method performed by a computer processing system, the method comprising:

• inputting parameters of an insurance policy, by the computer processing system, the parameters including controlling parameters, and the controlling parameters including:
• a constraint dictated parameter of the insurance policy;
• and
• a driven parameter of the insurance policy;
• the computer processing system analyzing a relationship between the constraint dictated parameter and the driven parameter;
• the computer processing system performing re-underwriting of the insurance policy using the parameters of the insurance policy and a set of re-underwriting criteria, the set of re-underwriting criteria including a constraint relationship, the constraint relationship constituting a relationship between certain of the parameters of the insurance policy;
• the computer processing system generating re-underwritten policy data to constitute a re-underwritten policy, in conjunction with using the re-underwritten policy data to adjust the constraint dictated parameter;
• the computer processing system further programmed to execute:
• determining a change in the constraint dictated parameter associated with the re-underwritten policy;
• determining a magnitude of change in the constraint dictated parameter;
• performing an adjustment of the driven parameter based on the magnitude of change, before and after the re-underwriting, in the constraint dictated parameter, the adjustment being performed to maintain the relationship between the constraint dictated parameter and the driven parameter under a formula agreed upon by the insurance policy insurer and the policy owner;
• and
• determining an available amount, based on at least one of the controlling parameters;
• and
• outputting, by a communication portion, the available amount;
• and
• wherein the computer processing system is in a form of a computer processing system that processes insurance related information.

A computer processing system that performs a cash value adjustment to a life insurance policy issued by an insurer and owned by a policy owner to effect a settlement option in a form of an annuity contract, the computer processing system comprising:

• a computer processor, which is constituted by a tangibly embodied computer, coupled to a memory component, a communication portion, a relationship processor, a re-underwriting analysis processor, a cash value adjustment processor and an annuitization processor;
• the communication portion inputs parameters of an insurance policy, such inputting of parameters including a decryption process, the parameters including controlling parameters, and the controlling parameters including:
• (a) a constraint dictated parameter of the insurance policy;
• and
• (b) a driven parameter of the insurance policy;
• the relationship processor programmed to analyze a constraint relationship between (a) the constraint dictated parameter and (b) the driven parameter, and the constraint relationship defined in terms of a plurality of parameters associated with the life insurance policy;
• the re-underwriting analysis processor programmed to perform a re-underwriting of the insurance policy using the parameters of the insurance policy and a set of re-underwriting criteria, the set of re-underwriting criteria including a constraint relationship,
• the constraint relationship constituting a relationship between certain of the parameters of the insurance policy, and
• the re-underwriting analysis processor programmed to generate re-underwritten policy data to constitute a re-underwritten policy, the re-underwriting analysis processor processing the re-underwritten policy data to adjust a value of the constraint dictated parameter so as to generate an adjusted constraint dictated parameter;
• the relationship processor programmed to determine a magnitude of change, resulting from the re-underwriting, in the constraint dictated parameter;
• the cash value adjustment processor programmed to perform an adjustment of the driven parameter based on the magnitude of change, before and after the re-underwriting, in value of the constraint dictated parameter, and
• the adjustment being performed to maintain a mathematical relationship between (a) the constraint dictated parameter and (b) the driven parameter under a formula agreed upon by the insurance policy insurer and the policy owner;
• and
• the communication portion configured to output the re-underwritten policy data of the re-underwritten policy along with (a) the adjusted constraint dictated parameter and (b) the adjusted driven parameter, and such outputting of parameters including an encryption process;
• and
• the annuitization processor programmed to determine an adjusted cash value, based on such output, to determine a premium of an annuity contract;
• and
• wherein the cash value adjustment processor programmed to use a net single premium, which is associated with the insurance policy, as the constraint dictated parameter;
• wherein the cash value adjustment processor programmed to use a cash surrender value (CSV), which is associated with the insurance policy, as the drive parameter;
• and
• wherein the relationship processor is further programmed to determine a magnitude of change, resulting from the re-underwriting, in the constraint dictated parameter includes:
• determining a percentage change in the value of the constraint dictated parameter before the re-underwriting vis-à-vis a value of the constraint dictated parameter after the re-underwriting.