Methods for administering loan premiums in a pension insurance program
AssigneePentech, LLC
InventorJohn A. Martin
Life of this patent
Estimating the term…
Abstract
A pension insurance plan method governs the establishing and administering of a loan premium towards a plan loan secured by participant's plan assets, eliminating adverse tax consequences to the plan beneficiary in the event of the death or disability of the borrower-participant and ensures that the full plan account balance passes intact to beneficiary in such event.
Claims50
A computer-implemented method for administering premium collection for a plan sponsor that has prospectively required debt mitigation coverage as a condition of credit, the method comprising the steps of:
- providing a pension debt mitigation coverage to protect assets in a retirement account of an insured or covered participant in a defined contribution pension plan from unnecessary dissipation due to loan default,
- wherein the pension debt mitigation coverage includes an insurance policy or a debt cancellation agreement,
- wherein the assets of the retirement account serve as collateral for a loan to the insured participant, and
- wherein the pension debt mitigation coverage protects an unpaid balance of the loan upon an occurrence of a risk event;
- computing a retirement account insurance premium or consideration based upon the unpaid balance of the loan;
- instructing a computer to collect the retirement account insurance premium from a designated source account associated with the insured participant and selected by the plan sponsor;
- and
- causing the electronic transfer of funds into an operating account of an insurer providing the insurance.
A computer-implemented method for establishing a premium framework for a pension debt mitigation coverage insurance program, the method comprising the steps of:
- electronically transmitting a certificate evidencing coverage of a participant from an insurer or a debt cancellation provider,
- wherein an insurance policy or a debt cancellation agreement pays a benefit in the event of a risk event affecting the participant, and
- wherein the benefit is a function of the value of a loan collateralized by assets in a retirement account owned by the participant;
- determining a balance of the loan collateralized by assets in the retirement account;
- determining a rate for computing a premium or consideration for the loan based upon the domicile of the retirement plan and at least one coverage component selected by a plan sponsor;
- and
- calculating by a computer a loan premium based on the loan balance and the computed rate.
A computer-implemented method for setting premium rates for a pension insurance plan program, the method comprising the steps of:
- providing a debt mitigation coverage for preserving assets in a retirement account of a plan participant who takes a loan collateralized by assets in the retirement account from unnecessary dissipation due to a default from a risk event that subjects the loan to a potential default,
- wherein the debt mitigation coverage provides protection against the occurrence of the risk event;
- establishing a plan trust in a first jurisdiction,
- wherein the plan trust or a trustee holds the debt mitigation coverage for the benefit of the plan and a participant of the plan;
- determining by a computer a rate permitted under applicable regulations to be charged with respect to insurance in each of a plurality of jurisdictions;
- and
- setting a plan premium rate for the plurality of jurisdictions, the rate being less than the respective rate for a subset of the plurality of jurisdictions,
- wherein the plurality of jurisdictions are based upon the first jurisdiction.
A computer-implemented method for administering a pension insurance plan premium for a pension debt coverage policy providing a credit life insurance associated with a retirement plan participant who takes a loan, the method comprising the steps of:
- providing a debt coverage policy that provides a credit life insurance associated with a retirement plan participant who takes a loan,
- wherein assets in the retirement account serve as collateral for the loan, and
- wherein the debt coverage policy pays a benefit in an amount sufficient to cover an outstanding balance of the loan upon occurrence of a risk event affecting the participant's ability to repay the loan;
- establishing a plan trust in a first jurisdiction,
- wherein the plan trust holds the debt coverage policy;
- determining by a computer a rate permitted under applicable regulations to be charged with respect to credit life insurance in each of a plurality of jurisdictions,
- wherein the plurality of jurisdictions is based upon the first jurisdiction;
- and
- applying the premium rate to a balance of the loan.
Dependencies are inferred from the claim text.