System and Method for Managing a Long Term Care Rider for Whole Life Insurance Policy

A computer implemented method of administering and managing a whole life insurance policy with a long term care rider, the method comprising:

• storing information in a data storage device regarding the whole life insurance policy and long term rider, the long term care rider being a rider purchased concurrently with the whole insurance policy and providing for acceleration of the death benefit for reimbursement of covered long term care expenses of the insured when the insured is chronically ill, the information stored including data regarding the cash value of the whole life insurance policy;
• periodically revising the information regarding the whole life insurance policy through a policy administration module, the revised information including data regarding premium payments, the revising including calculating a dividend, if any, due under the whole life insurance policy, the dividend calculations based on the death benefit stored without regard to any accelerated benefits paid under the long term care rider, the revised information including data regarding dividends and any additional coverage purchased under the whole life insurance policy with dividends;
• receiving claims for payment of accelerated benefits under the long care term rider through a claim processing module;
• authorizing an initial accelerated benefit payment under the long term care rider, initial authorization including performing a verification that the insured is chronically ill and a verification that payment of accelerated benefits is eligible under the conditions of the long term care rider;
• periodically processing received claims for payment of accelerated benefits under the long term care rider through the claim processing module, the periodic processing including a determination that the claims do not exceed a periodic maximum benefit amount and that the total claims do not exceed a lifetime maximum benefit amount, the periodic processing including a determination that the claims are for covered long term care expenses incurred by the insured;
• periodically issuing payments through a claim payment module based on the periodic payment of received claims;
• and
• maintaining a lien against the death benefit of the whole life insurance policy in the amount of the accelerated benefits paid under the long term care rider.