US20030120521A1 - System and method for simultaneous multiple death life insurance - Google Patents

Abstract

The invention provides a system and method for multiple death life insurance in the event of simultaneous or coincident death of two or more insured parties, or a defined group of two or more insured parties. More particularly, embodiments of the invention provide a computer system and method for providing simultaneous multiple death life insurance designed to provide benefits to alleviate the financial burden experienced by beneficiaries as a result of simultaneous or coincident of two or more insured parties. Simultaneous multiple death life insurance according to the invention may be obtained through the internet by remote computers and internet access devices well known in the art.

Description

CLAIM OF PRIORITY TO PRIOR APPLICATION
• This application is a continuation application under 37 C.F.R. § 1.53(b) of Ser. No. 09/781,132, filed Feb. 9, 2001, which claims priority under 35 U.S.C. § 119(e) to provisional application Serial No. 60/181,649, filed on Feb. 10, 2000, which are incorporated herein by reference.[0001]
FIELD OF THE INVENTION
• The invention generally relates to a system and method for providing life insurance for a multiple of two or more persons. More particularly, the invention provides a computer system and method for providing multiple death life insurance in the event of simultaneous or coincident death of at least two persons.[0002]
Background of the Invention
• A wide range of life insurance products is currently available in the insurance market, including various term life, ordinary life, whole life, and variable life insurance policies, which provide a variety of terms and benefits to suit the insurance and investment needs of consumers. However, life insurance providing death benefits for the unlikely event of simultaneous or coincident death of two or more insured parties as a single, stand-alone plan is not available. Life insurance currently available providing death benefits in the event of death of two insured parties includes coverage referred to as survivorship, joint last-to-die or second-to-die life insurance. Survivorship plans are typically provided for at least two people and pay benefits upon the failure of the two-person or joint status of the plan. Death of the second or last person is a failure of the joint status, triggering payment of death benefits.[0003]
• Underwriting and management of survivorship plans requires insurance companies to determine cost-of-insurance rates based upon the characteristics of the insured parties comprising the joint status. Insurance companies must maintain up-to-date information on the insured parties with respect to their current survival status, which is particularly important in the event of death of the first of the two insured parties. The event of death of the first insured party may change the mortality and characteristics of the surviving second insured party. The costs associated with underwriting and managing survivorship plans, as well as the costs associated with marketing and selling insurance, comprise a substantial portion of the relatively high premiums survivorship plans command. Premiums are also affected by the relatively high limits of survivorship plans.[0004]
• Although survivorship plans pay benefits upon the failure of the joint status as a consequence of simultaneous death, survivorship plans are not designed to address the unique financial implications associated with simultaneous or coincident death of two or more insured parties. Survivorship plans are not intended to provide benefits to cover the special financial needs of beneficiaries as a result of simultaneous death of two or more insured parties, particularly if insured parties are essential to the financial support or financial health of beneficiaries. Survivorship plans may be linked to additional benefits providing financial resources for the unique and special circumstances of simultaneous death. However, premiums for such additional coverage would not be affordable to a large majority of potentially insurable lives.[0005]
SUMMARY OF THE INVENTION
• The invention provides a method for providing life insurance for simultaneous death of a multiple of insured parties comprising obtaining information about each party for establishing the eligibility of the parties and certifying the parties are in good health by comparing the information received with predetermined standards, and, upon meeting the predetermined standards, issuing a simultaneous multiple death life insurance plan to the parties.[0006]
• The invention also includes a computer system for providing simultaneous multiple death life insurance to a multiple of insured parties. In one embodiment of the invention, simultaneous multiple death life insurance is provided as a single, independent or stand-alone plan comprising at least one insurer, at least two parties, or a defined group of parties, and at least one beneficiary. The simultaneous multiple death life insurance plan further comprises a premium obligation amount, a death benefit amount of a fixed value, a term of a specified time during which the life insurance plan is valid, an obligation of the insured parties to pay the premium obligation amount, and an obligation of the insurer to pay the death benefit amount to the beneficiary upon simultaneous death of the insured parties. The simultaneous multiple death life insurance plan may define simultaneous death as death of two or more insured parties as a result of a common cause or event, or death of the two or more insured parties within a specified period of time as a result of a common cause or event, or from any cause or event. Simultaneous death may be further defined to include permanent incapacity of one insured party followed by the death of another insured party within a specified period of time as a result of a common cause or event, or from any cause or event. The simultaneous multiple death life insurance plan includes at least two insured parties who are related to each other and the beneficiary by a family relationship or a business endeavor, or some other existing or future financial relationship.[0007]
• The simultaneous multiple death life insurance plan of the invention is formed and managed by the computer system, wherein an underwriting insurer initially obtains from at least two persons underwriting information to assess the eligibility of the two persons in accordance with predetermined standards. In addition to the minimum underwriting information required to establish eligibility of the two persons. The underwriting information and the definition of simultaneous death are furnished to the computer system, wherein the single, independent simultaneous multiple life insurance plan is formed.[0008]
• In other embodiments of the invention, the information required by the underwriting insurer to issue a simultaneous multiple death life insurance plan may be provided by at least two persons to the underwriting insurer or the computer system of the invention through the internet from remote computers and other internet access devices well known in the art.[0009]
BRIEF DESCRIPTION OF THE DRAWINGS
• For a better understanding of the invention, reference is made to the drawings which are incorporated herein by reference and in which:[0010]
• FIG. 1 is a hardware block diagram illustrating the operation of a computer system for providing simultaneous multiple death life insurance in accordance with a first embodiment of the invention.[0011]
• FIG. 2 is a flow diagram of a computer system for providing simultaneous multiple death life insurance in accordance with the first embodiment of the invention.[0012]
DETAILED DESCRIPTION OF THE INVENTION
• Illustrative embodiments of the invention described herein provide a system and method for providing death benefits to one or more beneficiaries in the event of simultaneous or coincident death of a multiple of insured parties. More particularly, the invention provides a computer system and method providing simultaneous multiple death life insurance as a single, independent or stand-alone life insurance plan providing death benefits to mitigate the unique financial burden experienced by beneficiaries as a result of simultaneous death of two or more insured parties. The computer system and method may provide simultaneous multiple death life insurance for two or more insured parties who are related to each other and the beneficiaries by a family relationship or a business endeavor.[0013]
• Embodiments of the invention provide a computer system and method for simultaneous multiple death life insurance which is easily-obtainable by consumers for low-cost premiums and minimum qualifying underwriting requirements. Embodiments of the invention also provide a computer system and method for providing simultaneous multiple death life insurance as a single, independent or stand-alone life insurance plan. In embodiments of the invention simultaneous multiple death life insurance may not be associated with other life insurance plans held by the insured parties, nor requires the insured parties to purchase copending life insurance plans or other insurance products. In addition, embodiments of simultaneous death life insurance according to the invention may provide coverage to two or more insured parties irrespective of the eligibility of the insured parties for other insurance products. In addition, death benefits provided by embodiments of simultaneous multiple death life insurance according to the invention are independent of payment of death benefits by other life insurance plans. The computer system and method of the invention, therefore, provide a separate, stand-alone simultaneous multiple death life insurance providing death benefits to one or more beneficiaries for simultaneous or coincident death of two or more insured parties independent of the eligibility requirements and benefit payments of other life insurance coverage held by the insured parties.[0014]
• Embodiments of the invention will be described with reference to FIGS.[0015]1-2 which are presented herein for the purpose of illustrating embodiments and are not intended to limit the scope of the claims.
• Definitions[0016]
• The terms defined below are used herein for the purpose of illustrating embodiments and are not intended to limit the scope of the invention.[0017]
• As used herein to describe the embodiments of the invention, the term “simultaneous death” refers to: 1.) simultaneous or coincident death of two or more designated insured parties, or a specified number of designated insured parties of a defined group, as a result of a common cause or event (non-independent simultaneous death); 2.) death of two or more designated insured parties, or a specified number of designated insured parties in a defined group, within a specified period of time, e.g. three months, as a result of a common cause or event, or from any cause or event (independent simultaneous death); 3.) permanent incapacity of one or more designated insured parties following death of one or more designated insured parties within a specified period of time, e.g. three months, as a result of a common cause or event, or from any cause or event; and 4.) death of one or more designated insured parties following permanent incapacity of one or more designated insured parties within a specified period of time, e.g. three months, as a result of a common cause or event, or from any cause or event.[0018]
• The term “defined group” refers to two or more designated insured parties characterized by a given relationship between insured parties and/or their relationship to one or more persons or entities outside the defined group, including one or more beneficiaries.[0019]
• The term “permanent incapacity” refers to substantial illness or substantial bodily harm or injury, and any resulting illness therefrom, which renders a designated insured party substantially temporarily or permanently impaired or disabled to the extent death is expected to result within a specified period of time, e.g. six or twelve months.[0020]
• The term “designated” refers to any item appointed, specified or described in the simultaneous multiple death life insurance.[0021]
• Referring to FIG. 1, a hardware block diagram illustrates a first embodiment of the invention of a computer system for providing simultaneous multiple death life insurance in accordance with a first embodiment of the invention comprising a[0022]typical computer workstation10 containing a central processing unit (CPU)20, an input device, such as akeyboard40 or mouse, an output device such ascomputer monitor screen60, aprinter50, and one ormore storage devices70. A typical workstation is a personal computer, such as a Dell personal computer, with an Intel Pentium microprocessor. The system may be coupled to a Local Area Network80 (LAN) or other communication channels for receiving and transmitting information to and from potential and existing insured parties, and to provide access to data stored inoutside storage devices90. In addition, the computer system may be coupled to an intranet or theinternet92 to allow prospective insured parties and to inquire about and/or to subscribe to simultaneous multiple death life insurance through theinternet92 from remote computers and otherinternet access devices94 well known in the art.
• Referring to FIG. 2, a flow diagram illustrates a system for forming and managing simultaneous multiple death life insurance in the first embodiment of the invention as a single, independent or “stand-alone”[0023]life insurance plan100 with elements and information operators comprising at least one designatedinsurer110; at least two persons identified as designated insuredparties115, or a multiple of persons identified as a defined group comprising at least two designated insuredparties115, at least onebeneficiary125, adeath benefit amount130 of a fixed value, apremium obligation amount135; aterm140 of a specified time during which thelife insurance plan110 is valid, anobligation145 of theinsurer110 to pay thedeath benefit amount130 to thebeneficiary125 uponsimultaneous death155 of the insuredparties115, and an obligation of the insuredparties115 to pay thepremium obligation amount135.
• As shown in FIG. 2,[0024]underwriting information220 is initially obtained from two ormore persons210 and provided to anunderwriting insurer230 to assess the eligibility of the two ormore persons210 for simultaneous multiple death life insurance in accordance with predetermined standards. The amount ofunderwriting information220 required by theunderwriting insurer230 may be no more than completion of an application by the two ormore persons210, wherein, for example, one or more anti-selection questions are included to establish if a minimum level of eligibility of the two ormore persons210 has been met according to the predetermined standards. Theunderwriting insurer230 obtaining such information may include, although is not limited to, insurance providers, insurance companies, insurance brokers and agents, as well as other service providers, including, although not limited to, providers of financial investment services, banking services, credit services and other financial service providers offering consumer financial services. Theunderwriting information230 is furnished to the computer system of the first embodiment, wherein the single, independent simultaneouslife insurance plan100 is formed. In other embodiments of the invention, the information required by theunderwriting insurer230 to issue simultaneous multipledeath life insurance100 may be provided by prospectiveinsured parties210 to theunderwriting insurer230 or the computer system of the invention through theinternet92 by remote computers and otherinternet access devices94 well known in the art.
• In the event of simultaneous or coincident death of two or more designated[0025]insured parties115, or some threshold number of designatedinsured parties115 of a defined group, as indicated by the terms and conditions of the simultaneous multiple deathlife insurance plan100, the simultaneous multiple deathlife insurance plan100 would distribute165death benefits130 to thebeneficiary125 upon aconfirmation160 both deaths had occurred, or that conditions equivalent to death within the definition ofsimultaneous death155 with respect to all the designatedinsured parties115, or a threshold number of designatedinsured parties115 of a defined group, had occurred.
• According to the first embodiment of the invention,[0026]simultaneous death155 includes death of two or more designatedinsured parties115, or all or some threshold number of designatedinsured parties115 of a defined group, as a result of a common cause or event. The simultaneous multiple deathlife insurance plan100 also considerssimultaneous death155 to include death of two or more insured parties, or all or some threshold number of insured parties of a defined group, within a specified period of time as a result of a common cause or event, or from any cause or event. In this instance,simultaneous death155 occurs upon death ofinsured parties115 within a specified period of time identified in theplan100. The specified period of time is typically short, e.g. three months, to limit the time between death of a first insured party and death of a second insured party. Shortly-spaced death of two or more insured parties is included within the definition ofsimultaneous death155 according to the invention, because the financial burden on the designatedbeneficiaries125 under such circumstances is as great as the financial burden created by thesimultaneous death155 of insured parties as a result of a common cause or event. Therefore, upon death of two or more designatedinsured parties115 within a period of three months, as a result of either a common cause or event or different causes or events, theplan100 would providebenefits130 to the designatedbeneficiaries125. Although three months is a preferred period of time between death of insured parties as a condition equivalent tosimultaneous death155, the simultaneous multiple deathlife insurance plan100 is not limited to any specific period of time between death ofinsured parties115. However, in order to maintain the objective of low cost life insurance for thesimultaneous death155 ofinsured parties115, the period of time between death ofinsured parties115 may be relatively short to remain as a condition equivalent to simultaneous or coincident death.
• As described above,[0027]simultaneous death155 due to a common cause or event is considered non-independent simultaneous death occurring as a result of death of two or more designatedinsured parties115 due to the same cause or event, such as a single travel accident, wherein theinsured parties115 are temporally and spatially proximate to each other. However,simultaneous death155 also includes independent simultaneous death, wherein separate causes or events occur coincidentally and result in the coincident death of theinsured parties115. For example, independent simultaneous death occurs as a result of two or moreinsured parties115 coincidentally killed in separate travel accidents, wherein theinsured parties115 are traveling at the same time by different means and possibly in different time zones. Independent simultaneous death, therefore, includes death of a first insured party followed by death of a second insured party within a specified period of time as a result of separate causes or events, as described above.
• Upon the[0028]simultaneous death155 of the designatedinsured parties115, the simultaneous multiple deathlife insurance plan100 providesbenefits130 to the designatedbeneficiaries125 irrespective of death benefits distributed under other life insurance plans held by theinsured parties115. In this respect, the simultaneous multiple deathlife insurance plan100 operates as an separate life insurance policy for the sole risk ofsimultaneous death155, independent of the terms and conditions of other life insurance plans. The simultaneous multiple deathlife insurance plan100 is best suited for providing death benefits i30 to alleviate the overall financial burden and short-term and long-term financial needs of thebeneficiaries125 arising out of the unlikely event ofsimultaneous death155 of theinsured parties115.
• The simultaneous multiple death[0029]life insurance plan110 is designed to provide life insurance coverage to two ormore persons210 who are related to each other and/or the designatedbeneficiaries125 as a result of a family or business relationship. In cases in which two ormore persons210 and thebeneficiaries125 are related, the two ormore persons210 are often essential to the financial support or financial health of thebeneficiaries125 such that thesimultaneous death155 of the two ormore persons210 would impose significant financial burdens upon thebeneficiaries125. Theplan100 providesbenefits130 to thebeneficiaries125 specifically to eliminate or at least substantially reduce such financial burdens. In this respect, the simultaneous multiple deathlife insurance plan100 of the first embodiment may be limited to providing simultaneous multiple death life insurance to only thosepersons210 who are related to each other and/or to thebeneficiaries125 by a family relationship or a business endeavor. However, it is understood that the relationships between the designatedinsured parties115 and/or thebeneficiaries125 may include other relationships resulting from different circumstances and events than those described herein such that the multiple simultaneous deathlife insurance plan100 may be provided to all types of insured parties andbeneficiaries125.
• By way of example, a first aspect of the first embodiment of the invention includes two designated[0030]insured parties115 related by a family relationship such as a husband-wife caretaking pair supporting minor children or a son-daughter caretaking pair supporting dependent elderly parents. In the event of thesimultaneous death155 of theinsured parties115,benefits130 would be distributed to the beneficiary minor children and elderly parents as financial support to mitigate the financial burden and to meet the immediate financial needs created by such catastrophic loss.Benefit payments165 may create financial resources to assure the financial security and future education of minor children and provide funds for immediate financial needs, such as child care services.Such benefit payments165 would also ease the financial task for friends or family who assume responsibility or guardianship of beneficiary minor children.Benefit payments165 to elderly parents would assure funds for the present and future housing needs of parents, as well as future nursing care and medical expenses.
• Designated[0031]insured parties115 may also be related to each other and/or the designatedbeneficiaries125 by a business endeavor or common employment. By way of example, a second aspect of the first embodiment of the invention includes two ormore persons210 who are essential to a business or corporation, such as two partners of a business partnership, or chief executive and operating officers of a corporation. Thesimultaneous death155 of the business partners and the officers can have severe financial consequences to the business partnership and its employees, and the shareholders of the corporation, as well as to the members of their families.Benefit payments165 paid to beneficiary employees of the business partnership may help reduce such financial burdens as significant revenue losses and consequent employee layoffs resulting from death of the business partners. Similarly,benefit payments165 to beneficiary shareholders may help to offset increases in operating expenses to overcome the initial loss of executive management. In these cases,benefit payments165 may also help to protect the family members of the business partners and the officers against a substantial loss of inheritance due to the shortened working life.
• The simultaneous multiple death[0032]life insurance plan100 also providesbenefits130 in the event of thesimultaneous death155 of a specified number of designatedinsured parties115 comprising a defined group. By way of example, a third aspect of the first embodiment includes two or moreinsured parties115 comprising a defined group, wherein theinsured parties115 may be characterized as “members” of the defined group under the terms and conditions of theplan100 according to their relationship to each other and/or their relationship to one or more persons or entities outside the defined group. The members of the defined group may be related to each other and/or to one or more persons or entities outside the defined group as a consequence of a family or business relationship. Typically, the persons or entities outside of the defined group to whom theinsured parties115 are related are the designatedbeneficiaries125 who have a substantial reliance upon theinsured parties115 for their financial support or financial health.Benefits130 would be paid to thebeneficiaries125 upon thesimultaneous death155 of either all members of the defined group or, alternatively, a specified threshold number of members. For example, essential players and coaching staff of a professional sports team may be the designatedinsured parties115 of a defined group whosesimultaneous death155 would have a negative financial impact on a beneficiary corporation owning the sports team. In the event ofsimultaneous death155 of all members or a threshold number of members of the defined group, benefits130 would be paid in full to the beneficiary corporation. However, in the event of thesimultaneous death155 of less than all members, or less than some threshold number of members, either no benefit is paid or a reduced or proportional benefit may be paid. A reduced or proportional benefit relates to a reduced financial impact and may be associated with an additional premium.
• The simultaneous multiple death[0033]life insurance plan100 may allow for the substitution of members of a defined group as designatedinsured parties115 under circumstances in which a member is no longer eligible for inclusion in the defined group as a result of, for example, prior death, divorce, termination of employment, termination of partnership, etc. A new eligible member may be included in the defined group as a designatedinsured party115 to substitute for the member who is no longer eligible. Substitution of designatedinsured parties115 in a defined group also allows for changes occurring in the underlying operation of an entity, such as thebeneficiary entity125, to which the defined group is related. For example, members of a defined group may be added or removed as designatedinsured parties115 to reflect the addition and deletion of partners in a business partnership or the replacement of key employees in a company. Substitutions of designatedinsured parties115 and changes to the overall make-up of the defined group may include changes in premium to reflect a change in the nature of the risk the defined group represents. In other embodiments of the invention, substitution of members of the defined group of designatedinsured parties115 may be accomplished by at least one of the designatedinsured parties115 providing information concerning substitutions and changes to the defined group to theunderwriting insurer220 or the computer system of the invention through theinternet92 from remote computers andinternet access devices94 well known in the art.
• A group of designated[0034]insured parties115 may include a more complicated structure to cover a large number of insured parties. For example, a defined group may include ten designatedinsured parties115 who are subdivided into four teams of three members each with one or two members belonging to more than one team.Benefits130 would be provided to designatedbeneficiaries125 for thesimultaneous death155 of one entire team. With payment of additional premium,additional benefits130 may be available in the event of thesimultaneous death155 of more than one team. It is understood that other structures of a large defined group may be contemplated depending upon the level of financial loss resulting as a consequence of simultaneous death.
• Although the[0035]simultaneous death155 of two or more designatedinsured parties115 often results in a severe financial burden to the designatedbeneficiaries125, the financial burden resulting from the permanent incapacity of a designatedinsured party115 occurring simultaneously with death of another designatedinsured parties115 can be equally severe if not more severe to thebeneficiaries125. A severe financial burden would typically result when two or moreinsured parties115 are responsible for providing full financial support to the designatedbeneficiaries125, or are particularly essential to the financial health of the designatedbeneficiaries125. Under a simultaneous multiple deathlife insurance plan100, the permanent incapacity of a secondinsured party115 following death of a firstinsured party115 may not be covered if the permanent incapacity of the secondinsured party115 does not produce death within a specified period of time. The simultaneous multiple deathlife insurance plan100 under this circumstance would terminate andbenefits130 would not be paid to thebeneficiaries125. Should the specified period of time be limited to three months, death may not occur within such a short period, although the secondinsured party115 is not likely to recover and eventual death of the secondinsured party115 is expected. Therefore, the simultaneous multiple deathlife insurance plan100 according to a fourth aspect of the first embodiment of the invention includes permanent incapacity of a secondinsured party115 following death of a firstinsured party115 as a condition equivalent to death and within the meaning ofsimultaneous death155 in order to cover such instances in which the permanent incapacity of the secondinsured party115 is likely to result in eventual death.
• The permanent incapacity of an[0036]insured party115, however, may be limited to a specified duration of time for qualification as a condition equivalent to death within the meaning ofsimultaneous death155. For example,full benefits130 would be paid to thebeneficiaries125 in the event the permanently incapacitatedinsured party115 dies within a specified period of time, e.g. six or twelve months. While the permanently incapacitatedinsured party115 is alive,partial benefits130 may be paid to thebeneficiaries125 during the specified period with a balance ofbenefits130 paid upon death of the insured party. Permanent incapacity may be defined by the simultaneous multiple deathlife insurance plan100 to include substantial illness or substantial bodily harm or injury, and any resulting illness therefrom, which renders a designatedinsured party115 substantially temporarily or permanently impaired or disabled to the extent death is expected to result within six or twelve months, or some other specified period of time according to the simultaneous multiple deathlife insurance plan100.
• Termination of the simultaneous multiple death[0037]life insurance plan100 occurs with the singular death of a first designatedinsured party115 followed by the survival of a second designatedinsured party115 beyond a specified period of time, thereby eliminating the possibility of any death benefit claim under the simultaneous multiple deathlife insurance plan110. An alternative to termination of the plan may include an offer to the surviving secondinsured party115 to replace the firstinsured party115 who has died with a new designatedinsured party115 in order to continue simultaneous death coverage for a potential future claim. Another alternative to termination of the plan may include providing a right of the survivinginsured party115 to “convert” the simultaneous multiple deathlife insurance plan100 into single life coverage with payment of an additional premium.
• If the condition of permanent incapacity is included in the simultaneous multiple death[0038]life insurance plan100 as a condition equivalent to death within the meaning ofsimultaneous death155, theplan100 would not automatically terminate after death of a firstinsured party115 and the permanent incapacity of a secondinsured party115, but, rather, would provide benefits to beneficiaries in the event death of the secondinsured party115 is anticipated within a specified period of time, for example, within six or twelve months.
• As described above, the simultaneous multiple death[0039]life insurance plan100 is preferably designed for providingbenefit payments165 in the event ofsimultaneous death155 ofinsured parties115 who are related to each other and/or thebeneficiaries125 either by a family relationship or a business endeavor. Under these circumstances, the simultaneous multipledeath insurance plan100 may be limited to insuring only two persons, such as spouses, or a small defined group of people, such as business partners. However, it is understood that the simultaneous multiple deathlife insurance plan100 of the first embodiment is not limited to any specific number ofinsured parties115 orbeneficiaries125, nor to any particular relationship betweeninsured parties115 andbeneficiaries125.
• The simultaneous multiple death[0040]life insurance plan100 provides coverage for the single risk of simultaneous death of two or more persons and may be provided as a standard plan, wherein causes or events resulting insimultaneous death155 may be limited to general types of accidents, such as travel-related accidents, or may be highly individualized plans tailored to the specific needs and desires ofinsured parties115 andbeneficiaries125. In this vein, the simultaneous multiple deathlife insurance plan100 may provide coverage for two or more persons for a single event and/or for a specific period of time with benefits designated for specific financial needs and expenses as a result ofsimultaneous death155. For example, a defined group of designatedinsured parties115 may include members of a college sports team, a community group or a social club who desire simultaneous death coverage for a single event, such as a planned group vacation requiring air travel, wherein coverage may be provided for the duration of the entire trip as an event or for only a specific period of time, such as air travel time. Death benefits130 may be designated, for example, as funds tobeneficiaries125 for payment of inheritance taxes.
• A feature and advantage of the simultaneous multiple death[0041]life insurance plan100 is the insured risk of simultaneous or coincident death of two or moreinsured parties115 as described herein is a highly unlikely event. Therefore,simultaneous death155 by its nature is an exceptionally low risk for anunderwriting insurer230 to assume. As a result, the extent of underwriting and medical evaluation required by aninsurer230 to provide such low risk life insurance would be minimum and not as extensive as the underwriting requirements of other life insurance products. Since the underwriting and administrative costs incurred to evaluate potentialinsured parties115 and to issue a simultaneous multiple deathlife insurance plan100 are low, theinsurer230 may translate low costs into affordable premiums. Therefore, the simultaneous multiple deathlife insurance plan100 according to the invention may be available to consumers for low, affordable premiums.
• Less extensive underwriting and medical evaluation allows the simultaneous multiple death[0042]life insurance plan100 to be available on a simplified, guaranteed basis, wherein potentialinsured parties115 are subject to a screening process, such as, for example, requiring responses to one or two qualifying questions designed to prevent anti-selection. In addition, the plan would be issued subject to submission of statements of good health, or some other easily obtainable documentation attesting to the health of the potentialinsured parties115. The minimum underwriting requirements, such as the screening process described herein, allows theplan100 to be issued with ease and in a timely manner. This is particularly advantageous in the event simultaneous death coverage is required for immediate events or circumstances, such as imminent air travel. In other embodiments of the invention, insured parties may obtain simultaneous multiple death life insurance simply and quickly by accessing anunderwriting insurer230 or the computer system of the invention through theinternet92 from remote computers andinternet access devices94 well known in the art. Theinsured parties115 provide required underwriting information and credit card information for payment of premium to theunderwriting insurer230 and simultaneous multiple life insurance is issued to theinsured parties115 through theinternet92 upon completion of underwriting and payment transactions. Therefore, the simultaneous multiple deathlife insurance plan100 according to the invention is easily and readily obtainable life insurance.
• In a fifth aspect of the first embodiment of the invention, the simultaneous multiple death[0043]life insurance plan100 may employ procedures to assess the continued eligibility of designatedinsured parties115. For example, assessment of continued eligibility may be linked to renewal procedures for theplan100 and performed upon payment of an annual premium. Such procedures may include furnishing statements of good health. The eligibility of designatedinsured parties115 as members of a defined group may be assessed by employing certification procedures, which require designatedinsured parties115 to certify, for instance, they are alive and in good health and continue to be a member of a defined group, e.g. spouses, essential employees, business partners. Such certification procedures may be similarly performed upon payment of an annual premium. In other embodiments of the invention, the procedures to assess continued eligibility of the designatedinsured parties115 may be satisfied byinsured parties115 providing renewal information, credit card information for premium payment, as well as other information required to continue coverage, to theunderwriting insurer230 through theinternet92 from remote computers and otherinternet access devices94 well known in the art.
• In a second embodiment of the invention, simultaneous multiple death life insurance is provided as a rider to an existing underlying or primary life insurance plan held by designated[0044]insured parties115. As described above in the first embodiment, the simultaneous multiple death life insurance rider providessimultaneous death benefits130 to designatedbeneficiaries125 irrespective of the underwriting requirements of the underlying or primary life insurance plan. Death benefits130 provided to designatedbeneficiaries125 under the simultaneous multiple death life insurance rider are also not linked to payment ofdeath benefits130 by the underlying or primary life insurance plan.
• In a third embodiment of the invention, simultaneous multiple death life insurance is provided as a rider to a separate insurance product which provides coverage and/or a benefit other than life insurance coverage and death benefits.[0045]
• In a fourth embodiment of the invention, a method for providing simultaneous multiple death life insurance for a multiple of insured lives comprises selecting at least two insured lives by a screening process, wherein the screening process includes identifying two or more insured parties and their relationship to each other and to one or more beneficiaries, obtaining underwriting information from the insured parties, for example, in response to one or more anti-selection questions designed to establish if the insured parties meet minimum eligibility requirements, comparing underwriting information received from the insured parties with predetermined standards of eligibility, and certifying the insured parties are in good health by requiring statements of good health from the insured parties. The method for providing simultaneous multiple death life insurance further comprises a death benefit amount of a fixed value and defining simultaneous death as 1.) simultaneous death of the insured parties as a result of a common cause or event, 2.) death of the insured parties within a specified period of time, e.g. three months, as a result of a common cause or event, or from any cause or event; or 3.) permanent incapacity of at least one of the insured parties following death of the other insured within a specified period of time, e.g. three months, as a result of a common cause or event, or from any cause or event. As described above with respect to the first embodiment, permanent incapacity may be a condition considered equivalent to death and included in the definition of simultaneous death to the extent death is expected to result within a specified period of time, e.g. six to twelve months. The method of providing simultaneous multiple death life insurance further includes determining a premium obligation amount, identifying an obligation of the insured parties to pay the premium obligation amount in a specified period of time, fixing a term of a specified period of time during which simultaneous multiple death life insurance is valid, and identifying an obligation of the insurer to pay the death benefit amount to the beneficiary in the event of the simultaneous death of the two insured parties.[0046]
• Having thus described at least one illustrative embodiment of the invention, various alterations, modifications and improvements will readily occur to those skilled in the art. Such alterations, modifications and improvements are intended to be within the scope and spirit of the invention. Accordingly, the foregoing description is by way of example only and is not intended as limiting. The invention's limit is defined only in the following claims and the equivalents thereto.[0047]

Claims (53)

What is claimed is:

1. A method for providing an insurance policy for at least one person and another person comprising:

identifying the persons as insured parties under the insurance policy;

obtaining information regarding the persons;

entering information regarding the persons into a data processing apparatus and determining in the data processing apparatus eligibility of the persons by comparing information received regarding the persons with one or more standards stored in the data processing apparatus;

entering information related to a benefit amount into the data processing apparatus;

entering information related to at least one beneficiary of the insurance policy into the data processing apparatus;

entering information related to a benefit qualification time frame into the data processing apparatus, the benefit qualification time frame being a period of time within which death of the one person and death of the another person are required to occur for payment of the benefit amount; and

generating the insurance policy using the data processing apparatus from the information relating to the eligible persons, the benefit amount, the at least one beneficiary, and the benefit qualification time frame, the insurance policy creating an obligation of an insurer to pay the benefit amount upon death of the one person when death of the one person occurs at one of: (i) death of the another person or (ii) after death of the another person, and within the benefit qualification time frame.

2. The method ofclaim 1 wherein the obligation of the insurer to pay the benefit amount includes an obligation to pay at least a portion of the benefit amount upon death of one of the persons and to pay a remaining portion of the benefit amount upon death of another of the persons.

3. The method ofclaim 1 wherein the persons have a business relationship.

4. The method ofclaim 1 wherein the persons have a familial relationship.

5. The method ofclaim 1 wherein at least one of the persons has a business relationship with the at least one beneficiary.

6. The method ofclaim 1 wherein at least one of the persons has a familial relationship with the at least one beneficiary.

7. The method ofclaim 1 wherein the at least one beneficiary is financially dependent upon at least one of the persons.

8. The method ofclaim 1 wherein obtaining information regarding the persons includes obtaining responses to one or more questions.

9. The method ofclaim 1 wherein obtaining information regarding the persons includes obtaining one or more statements from the persons asserting one or more conditions.

10. The method ofclaim 1 wherein the insurance policy includes a term to designate a period of time the insurance policy is effective.

11. A computer implemented method for providing an insurance policy for one person and another person comprising:

entering information identifying the persons as insured parties under the insurance policy into a computer;

obtaining information regarding eligibility of the persons and entering such information into the computer;

entering instructions into the computer to compare eligibility information of the persons with one or more standards stored in the computer;

entering information into the computer relating to at least one benefit amount and at least one beneficiary;

entering information into the computer relating to a benefit qualification time frame, the benefit qualification time frame being a period of time within which death of the one person and death of the another person are required to occur for payment of the at least one benefit amount; and

entering instructions into the computer to generate the insurance policy from information relating to the eligible persons, the at least one benefit amount, the at least one beneficiary, and the benefit qualification time frame, the insurance policy creating an obligation of an insurer to pay the at least one benefit amount upon death of the one person when death of the one person occurs at one of: (i) death of the another person or (ii) after death of the another person, and within the benefit qualification time frame.

12. The method ofclaim 11 wherein the obligation of the insurer to pay the at least one benefit amount includes an obligation to pay a portion of the at least one benefit amount upon death of one of the persons and to pay a remaining portion of the least one benefit amount upon death of another of the persons remaining.

13. The method ofclaim 11 further including entering information into the computer relating to another benefit amount and the insurance policy creates an obligation of the insurer to pay the another benefit amount upon death of one of the persons.

14. The method ofclaim 11 wherein the persons have a business relationship.

15. The method ofclaim 11 wherein the persons have a familial relationship.

16. The method ofclaim 11 wherein at least one of the persons has a business relationship with the at least one beneficiary.

17. The method ofclaim 11 wherein at least one of the persons has a familial relationship with the at least one beneficiary.

18. The method ofclaim 11 wherein the at least one beneficiary is financially dependent upon at least one of the persons.

19. The method ofclaim 11 wherein obtaining information regarding the persons includes obtaining responses to one or more questions.

20. The method ofclaim 11 wherein obtaining information regarding the persons includes obtaining one or more statements from the persons that asserts one or more conditions.

21. An insurance system for providing an insurance policy for one person and another person comprising:

at least one data processing apparatus;

at least one input apparatus operatively connected to the data processing apparatus for inputting information and instructions;

the data processing apparatus having one or more standards of eligibility stored therein;

entered information in the data processing apparatus identifying the persons as insured parties under the insurance policy;

entered information in the data processing apparatus related to eligibility of the persons;

entered instructions in the data processing apparatus to compare the inputted information related to eligibility of the persons with the one or more stored standards of eligibility and to determine eligibility of the persons;

entered information in the data processing apparatus relating to at least one benefit amount and at least one beneficiary;

entered information in the data processing apparatus relating a benefit qualification time frame, the benefit qualification time frame being a period of time within which death of the one person and death of the another person are required to occur for payment of the at least one benefit amount;

entered instructions in the data processing apparatus to generate the insurance policy wherein the insurance policy creates an obligation of an insurer to pay the at least one benefit amount upon death of the one person when death of the one person occurs at one of: (i) death of the another person or (ii) after death of the another person, and within the benefit qualification time frame; and

an output apparatus operatively connected to the data processing apparatus to produce the insurance policy.

22. The method ofclaim 21 wherein the benefit qualification time frame does not exceed6 months.

23. The method ofclaim 21 wherein the obligation of the insurer to pay the at least one benefit amount includes an obligation to pay a portion of the at least one benefit amount upon death of one of the persons and to pay a remaining portion of the at least one benefit amount upon death of another of the persons.

24. The method ofclaim 21 further including entered information in the data processing apparatus relating to another benefit amount and the insurance policy creates an obligation of the insurer to pay the another benefit amount upon death of one of the persons.

25. The method ofclaim 21 wherein the persons have a business relationship.

26. The method ofclaim 21 wherein the persons have a familial relationship.

27. The method ofclaim 21 wherein at least one of the persons has a business relationship with the at least one beneficiary.

28. The method ofclaim 21 wherein at least one of the persons has a familial relationship with the at least one beneficiary.

29. The method ofclaim 21 wherein the at least one beneficiary is financially dependent upon at least one of the persons.

30. The method ofclaim 21 wherein obtaining information regarding the persons includes obtaining responses to one or more questions.

31. The method ofclaim 21 wherein obtaining information regarding the persons includes obtaining one or more statements from the persons that asserts one or more conditions.

32. A product of the method ofclaim 1.

33. A product of the method ofclaim 11.

34. A product of the method ofclaim 13.

35. A method for insuring at least one person and another person comprising:

a) establishing at least one benefit payment of an insurance policy;

b) establishing a benefit qualification time frame, said benefit qualification time frame being a term of said insurance policy;

c) identifying said persons as insureds under said insurance policy;

d) identifying at least one beneficiary of said insurance policy; and

e) said insurance policy providing payment of the at least one benefit upon death of said one person when death of said one person occurs at one of: (i) death of said another person; or (ii) after death of said another person, and within said benefit qualification time frame.

36. The method ofclaim 35 further comprising offering said insurance policy as a principal offer to prospective customers.

37. The method ofclaim 35 wherein said at least one benefit includes a principal benefit that is provided upon death of said one person and said another person within said benefit qualification time frame.

38. The method ofclaim 37 wherein said at least one benefit includes a subsidiary benefit that is provided upon death of one of said persons.

39. A product of the method ofclaim 35.

40. A product of the method ofclaim 38.

41. A method for insuring members of a group having at least one group member and another group member comprising:

a) establishing at least one benefit payment of an insurance policy;

b) establishing a benefit qualification time frame, said benefit qualification time frame being a term of said insurance policy;

c) identifying said group members as insureds under said insurance policy;

d) identifying at least one beneficiary of said insurance policy; and,

e) said insurance policy providing payment of said at least one benefit payment upon death of one group member: (i) upon death of said another group member or (ii) after death of said another group member, and within said benefit qualification time frame.

42. An insurance policy, said insurance policy providing payment of at least one defined benefit if one identified person dies and at least one other identified person dies within a defined benefit qualification time frame.

43. The insurance policy ofclaim 42 wherein the at least one defined benefit is made to one or more beneficiaries of both of said persons.

44. A method for providing an insurance policy for one person and another person comprising:

identifying the persons as insured parties under the insurance policy;

obtaining information regarding the persons;

determining eligibility of the persons by comparing information received regarding the persons with one or more standards;

establishing at least one benefit amount of the insurance policy;

identifying at least one beneficiary of the insurance policy;

establishing a benefit qualification time frame, the benefit qualification time frame being a term of the insurance policy; and

generating the insurance policy that contains the identity of the insured parties and of the at least one beneficiary, the at least one benefit amount and the established benefit qualification time frame, the insurance policy creating an obligation of an insurer to pay the at least one benefit amount upon death of the one person: (i) at a time of death of the another person or (ii) after a time of death of the another person, and within the benefit qualification time frame.

45. The method ofclaim 44 wherein the persons have a business relationship.

46. The method ofclaim 44 wherein the persons have a familial relationship.

47. The method ofclaim 44 wherein at least one of the persons has a business relationship with the at least one beneficiary.

48. The method ofclaim 44 wherein at least one of the persons has a familial relationship with the at least one beneficiary.

49. The method ofclaim 44 wherein the at least one beneficiary is financially dependent upon at least one of the persons.

50. The method ofclaim 44 wherein obtaining information regarding the persons includes obtaining responses to one or more questions.

51. The method ofclaim 44 wherein obtaining information regarding the persons includes obtaining one or more statements from the persons asserting one or more conditions.

52. The method ofclaim 44 wherein the insurance policy includes a term to designate a period of time the insurance policy is effective.

53. A product of the method ofclaim 44.

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