| CPC G06Q 40/08 (2013.01) [G06Q 10/067 (2013.01)] | 1 Claim |
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1. A system of administering compliance for an integrated cash value life insurance policy comprised of at least one individual term insurance policy and at least one individual annuity policy, owned by an insured, with the at least one individual term insurance policy or the at least one individual annuity policy issued from a same or separate insurance companies, providing the insured the ability to unbundle a traditional permanent life insurance policy into life insurance protection and cash value components and obtain real-time compliance information based on modifications to the at least one individual term annuity insurance policy without impacting the at least one individual annuity policy or modifications to the at least one individual annuity policy without impacting the term life insurance protection products, the system comprising:
a user interface including a plurality of adjustable functions that enable the insured to evaluate compliance implications on a variety of possible combinations of individual term and annuity policies prior to formally applying for a new individual term and/or annuity policy(ies), changing the benefits of an existing term policy(ies), or submitting a new premium or withdrawing cash from an existing annuity policy(ies);
the user interface displaying a plurality of functions containing simulation parameters including at least one of: compliance objectives, insurance benefit and annuity cash value objectives, total integrated cash value policy premium objectives or limits, wherein the simulation parameters or compliance objectives are provided in an input field, formula field, data relationship component, or variable table, the plurality of functions including the following:
a first function corresponding to a selection of a compliance method from at least one of: a guideline premium test (GPT) method or a cash value accumulation test (CVAT) method, if the insured is creating a new integrated cash value policy, otherwise the system identifies the compliance method selected when the integrated cash value policy was created, thereby providing the insured the ability to simulate and compare the compliance limits generated by each method in real-time prior to making an irreversible selection when creating the integrated cash value policy;
a second function corresponding to selecting an insurance interest rate (IIR) method from at least one of: a dynamic method or a static method, if the insured is creating a new integrated cash value policy, or a default method, otherwise the system identifies the IIR method selected when the integrated cash value policy was created, thereby providing the insured the ability to simulate and compare the compliance limits for both IIR methods in real-time prior to making the irreversible selection when creating the integrated cash value policy;
a third function corresponding to selecting compliance tolerance filters when an administrative system simulates and displays combinations of term life insurance and annuity policies that trigger violation of 7-Pay Modified Endowment Premium limits, thereby accelerating processing time and increasing potential portfolio combinations when the insured accepts implications with combinations that violate the 7-Pay Modified Endowment Premium limits;
a fourth function corresponding to input fields to specify the insured's demographics, and current health status estimate with computer-assisted definitions to assist in estimating the insured's risk class for potential new term integrated cash value policy applications;
a fifth function corresponding to selecting a term insurance face amount adjustment option where one option is to maintain the specified coverage amount regardless of the annuity cash values and a second option is to adjust down the specified face amount of the designated term policy for the increase in annuity cash values, thereby providing the insured the ability to simulate and compare the total death benefit options and their respective tax implications in real-time prior to applying for a new master policy or making changes to an existing master policy;
a sixth function corresponding to the insured specifying individual term policy preferences such as range on term policy guarantee periods for potential new policy applications, and preferences for type of annuity such as fixed, indexed, or variable, for filtering purposes, including computer-assisted filtering by the fourth function, to reduce the new term and annuity products displayed to the insured for consideration in the simulation, thereby simplifying the term and annuity product selection process for the insured to build a hypothetical master policy, or change an existing master policy, and to simulate the tax compliance implications;
a seventh function corresponding to selecting whether the simulation applies to a newly created integrated cash value policy or an existing integrated cash value policy, with an input field for policy account information facilitating real-time updates from the administrative system on existing policy details;
an eighth function with a plurality of simulation input parameters on potential changes, or combination of changes, to existing term and/or annuity policy(ies), purchase of one or more new term and/or annuity policies, additional premium to existing annuity(ies), with each product selection requesting user input on the simulation parameters to help the insured maximize their time efficiency and ensure any changes being considered are compliant with the 7702 definitional limits and the MEC tolerance election made in the third function, before making irreversible changes to existing integrated cash value policies or applying for new integrated cash value policies;
upon completion of all fields, the insured engages the user interface's simulation function to interact with the administrative system to calculate and display via numbers, tables, graphics, or data relationship components, the simulated integrated cash value policy's premiums paid, death benefits, and annuity cash values and the compliance limits and capacity for additional premium and/or cash value, or increases in term life insurance face amount needed, thereby helping the insured to determine in real-time the right combination of term insurance death benefit amounts, specific product terms, and annuity products that fit the insured's life insurance protection, cash value growth and tax management objectives before submitting applications to the insurance companies;
a modelling system to process the insured's request to simulate the creation of a new integrated cash value life insurance policy or changes to an existing integrated cash value life insurance policy, and ongoing determination of the compliance tests from changes in premium, cash value and benefit amounts for an existing integrated cash value life insurance policy, the modelling system comprising:
one or more processors; and
one or more non-transitory computer-readable media storing computing instructions that, when executed on the one or more processors, perform:
transmitting a first electronic communication to a first respective insurance company administrative system to obtain first individual policy data, the first respective insurance company administrative system connected to a first secure network;
transmitting a second electronic communication to a second respective insurance company administrative system to obtain second individual policy data, the second respective insurance company administrative system connected to a second secure network different than the first secure network;
receiving, in a third electronic communication from the first respective insurance company administrative system, the first individual policy data;
receiving, in a fourth electronic communication from the second respective insurance company administrative system, the second individual policy data;
combining the first and second individual policy data from the at least one individual term insurance policy and the at least one individual annuity policy from the respective insurance company administrative systems into an integrated portfolio of policies;
determining aggregate premiums and cash value for the integrated portfolio of policies to create an integrated cash value life insurance policy;
determining whether the integrated portfolio of policies creating the integrated cash value life insurance policy, satisfies a material change in benefits threshold;
identifying the compliance method from the first function to be used for an integrated cash value life insurance policy calculation of definitional limits of premium and cash value for the integrated portfolio of policies;
identifying the insurance interest rate (IIR) method from the second function for determining the method to be used in the definitional limit calculations;
identifying the face amount adjustment election from the fifth function for determining if the master policy is considered a level death benefit or increasing death benefit policy for tax compliance calculation purposes;
determining definitional limits on aggregate premium and cash value for the integrated portfolio of policies based on (i) the material change in benefits threshold, (ii) the compliance method, and (iii) the IIR;
analyzing, by coordinating analysis of data streams from separate computing systems communicatively coupled to different computing networks, whether the integrated cash value life insurance policy consisting of a portfolio of separate individual term insurance and annuity policies is compliant with the definitional limits for the integrated cash value life insurance policy;
notifying the insured of any compliance breaches by updating compliance status on an account accessible from the user interface while continuously analyzing the data streams from the separate computing systems communicatively coupled to different computing networks;
in response to the insured manipulating the plurality of functions via the user interface, a real-time communication exchange is initiated between the user interface and the modeling system and the user interface is updated in real-time to display permanent life tax compliance implications for an unbundled integrated cash value policy, wherein the updated user interface enables the insured to evaluate the unbundled integrated cash value policy's compliance prior to submitting one or more individual term and annuity policy applications, making changes to existing term and annuity contracts, increasing annuity funding, or taking cash distributions from an existing annuity; and
in response to receiving the tax compliance implications to the unbundled integrated cash value policy through the user interface, the user interface enables the insured to submit the one or more individual term and annuity policy applications, request changes to an existing policy and increase annuity funding or take distributions from an annuity for the unbundled integrated cash value policy to one or more third-party systems associated with one or more insurance carriers.
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