Methods and systems for administering indexed life insurance
AssigneeSecurity Life of Denver Insurance Company
InventorsJohn McSwaney, Anthony Ginsberg, Ben Wolzenski
Life of this patent
Estimating the term…
Abstract
Disclosed is a system and method for administering a life insurance policy to provide increased interest based on specifically weighted linkage to multiple equity indices that typically may include Standard & Poor's 500 Composite Price Index, Dow Jones EURO STOXX 50, the Hang Seng Index, and/or derivatives thereof wherein the leading-performing index during a look back period is weighted more heavily than any other index. Also disclosed is a computer system using at least one administration component to implement a series of steps associated with administering an equity indexed-interest universal life insurance policy.
Claims15
A method of adjusting a value of a life insurance policy comprising:
- (i) defining a point-to-point return for at least two indices over a predefined period once the predefined period has ended;
- (ii) determining a best performing index (Index 1) and a second best performing index (Index 2) by comparing the point-to-point returns of the two or more indices;
- (iii) calculating an adjusted index return by adding a first weighted percentage of the value of the Index 1 return to a second weighted percentage of the value of the Index 2 return, wherein the first weighted percentage is greater than 50%, the second weighted percentage is equal to 100% minus the first weighted percentage;
- (iv) calculating an indexed interest rate based upon the adjusted indexed return;
- and
- (v) applying the indexed interest rate to the value of the life insurance policy after the predetermined period has ended when the indexed interest rate is greater than zero;
- wherein at least one of steps (i)-(v) is performed by employing a processor to execute computer executable instructions stored on a tangible computer-readable medium.
A computer program product for use with a computer, said computer program product comprising a computer usable medium having computer readable program code embodied therein, the computer readable program code including:
- a base interest rate segment for applying a base interest rate to a value of a life insurance policy for a predefined period;
- a point-to-point return segment for defining a point-to-point return for at least two indices over the predefined period;
- a determining segment for determining a best performing index (Index 1) and a second best performing index (Index 2) by comparing the point-to-point returns of the at least two indices;
- an adjusted index return segment for calculating an adjusted index return by adding a first weighted percentage of the value of the Index 1 return to a second weighted percentage of the value of the Index 2 return, wherein the first weighted percentage is greater than 50% and the second weighted percentage is equal to 100% minus the first weighted percentage;
- and
- an applying segment for determining the value of the life insurance policy after the predetermined period has ended, the value of the life insurance policy being based at least in part on the adjusted index return.
A computer system for adjusting a value of a life insurance policy comprising:
- a physical computer-readable medium having computer readable program code embodied therein, the computer readable program code including:
- a base interest rate segment for applying a base interest rate to a value of a life insurance policy for a predefined period,
- a point-to-point return segment for defining a point-to-point return for at least two indices over the predefined period,
- a determining segment for determining a best performing index (Index 1) and a second best performing index (Index 2) by comparing the point-to-point returns of the at least two indices,
- an adjusted index return segment for calculating an adjusted index return by adding a first weighted percentage of the value of the Index 2 return, wherein the first weighted percentage is greater than 50% and the second weighted percentage is equal to 100% minus the first weighted percentage, and
- an applying segment for determining the value of the life insurance policy after the predetermined period has ended, the value of the life insurance policy being based at least in part on the adjusted index return;
- and
- a processor adapted to execute the computer readable program code contained on the physical computer-readable medium.
Dependencies are inferred from the claim text.