Last Survivor Insurance Data Processing System
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Solution Overview
Problem
Current systems for last survivor life insurance policies do not adequately address the needs of individuals seeking financial plans that cover death benefits for the last survivor, as well as risks such as chronic illness, disability, and unexpected longevity, which are not accounted for in traditional retirement planning.
Innovation Solution
A computer system that processes data for last survivor life insurance policies, including associated single life policies and ancillary benefits, to generate illustrations, process applications, and issue policies, which integrates data processing for death benefits, ancillary risks, and premium management, allowing for coordinated coverage and administration of multiple policies.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If traditional retirement planning is used, then basic retirement income is provided, but ancillary risks such as chronic illness, disability, and unexpected longevity are not covered
Solution Approach 1:
The patent combines a last survivor life insurance policy with multiple ancillary benefit riders (chronic illness, disability, longevity) into an integrated financial protection package. This merging allows the policy to simultaneously provide death benefit protection and ancillary risk coverage, resolving the contradiction between coverage scope and financial security reliability.
Solution Approach 2:
The life insurance policy is designed to serve multiple functions: providing death benefits to beneficiaries, covering chronic illness expenses, covering disability expenses, and providing income extension for unexpected longevity. This multi-functionality allows a single policy to address various financial risks that traditional retirement planning does not cover.
2Adaptability or versatility
If separate policies are purchased for each risk type, then comprehensive coverage is achieved, but administrative complexity and cost increase
Solution Approach 1:
The patent merges multiple separate insurance policies (life insurance, chronic illness insurance, disability insurance, longevity insurance) into a single integrated policy structure. This consolidation maintains comprehensive coverage while reducing administrative complexity by eliminating the need to manage multiple separate policies, premiums, and claims processes.
Solution Approach 2:
A single life insurance policy is designed to provide multiple types of coverage through ancillary benefit riders, making it a universal solution that replaces what would traditionally require multiple separate policies. This reduces the complexity of policy administration while maintaining comprehensive coverage scope.
3Reliability
If last survivor life insurance is purchased, then death benefit is provided, but coverage for ancillary risks during lifetime is not included
Solution Approach 1:
The patent segments the total insurance coverage into distinct components: the base last survivor life insurance policy providing death benefits, and separate ancillary benefit riders covering chronic illness, disability, and longevity risks. This segmentation allows the policy to maintain reliable death benefit provision while expanding adaptability to cover additional risk types.
Solution Approach 2:
The ancillary benefit riders are attached in advance to the life insurance policy, establishing coverage for chronic illness, disability, and longevity risks before these events occur. This preliminary action ensures that when these ancillary risks materialize during the insured's lifetime, coverage is already in place, expanding the overall risk coverage scope.
Data Source
AI summary
A computer system for processing data related to last survivor life insurance policies includes a processor configured to process data related to a last survivor policy on two or more insureds, associated single life policies on the two or more insureds, and one or more ancillary benefits. The processing of data may include generation of illustrations, processing of applications, underwriting of applications, and generation of policy documents, employing common data for the last survivor policy and the one or more associated single life policies. The ancillary benefits may include payments based on a medical condition of an insured, payments based on longevity of an insured, and payments based on disability of an insured.