Methods of offering and providing a variable life insurance product

Abstract

A variable universal life insurance product that includes a death benefit and associated investment vehicles is selectively offered. A life insurance policy chassis is provided by an insurance company to an asset manager. The asset manager combines the life insurance policy chassis with one or more associated investment vehicles managed by the asset manager to form a variable universal life insurance product. The asset manager selectively makes the insurance product available to respective clients of the asset manager. The insurance company providing service for the death benefit and the asset manager providing service for the associated investment vehicles.

1 . A method of offering a variable universal life insurance product that includes a death benefit and associated investment vehicles, comprising: 
 combining a life insurance policy chassis from an insurance company with one or more associated investment vehicles to be managed by an asset manager to form a variable universal life insurance product; and    making the insurance product available to clients of the asset manager;    the insurance company being prepared to provide service for the death benefit and associated investment vehicles in the variable universal life insurance product.    
     
     
         2 . The method of  claim 1 , wherein the death benefit is funded by the associated investment vehicles.  
     
     
         3 . The method of  claim 1 , further comprising the asset manager selectively making the insurance product to a restricted group of the clients of the asset manager.  
     
     
         4 . The method of  claim 1 , further comprising making the insurance product available to respective clients selected in accordance with at least one criterion based on the client's assets.  
     
     
         5 . The method of  claim 1 , further comprising the asset manager establishing a plurality of sub-accounts for the associated investment vehicles.  
     
     
         6 . The method of  claim 5 , further comprising the asset manager selecting the associated investment vehicles available in the insurance product and the asset manager allocating a client premium for the insurance product amongst the associated investment vehicles.  
     
     
         7 . The method of  claim 5 , further comprising the client allocating a premium for the insurance product amongst the associated investment vehicles.  
     
     
         8 . The method of  claim 1 , further comprising compensating the insurance company with a fee funded solely from the associated investment assets.  
     
     
         9 . The method of  claim 8 , wherein the fee is a percentage of the account value.  
     
     
         10 . The method of  claim 9 , wherein the fee is a guaranteed percentage based on factors.  
     
     
         11 . A life insurance product offered by the method recited in  claim 1 .  
     
     
         12 . The life insurance product of  claim 11 , wherein the investment vehicles are proprietary to the asset manager.  
     
     
         13 . The life insurance product of  claim 11 , wherein the insurance charges for the death benefit are based on the value of the investment assets.  
     
     
         14 . The life insurance product of  claim 13 , wherein the insurance charges for the death benefit are a fixed percentage of the value of the investment assets.  
     
     
         15 . The life insurance product of  claim 14 , wherein the fixed percentage is guaranteed not to change.  
     
     
         16 . The life insurance product of  claim 14 , wherein the fixed percentage is paid to the insurance company out of the investment assets managed by the asset manager.  
     
     
         17 . The life insurance product of  claim 16 , wherein the fixed percentage is the only recurring charge paid to the insurance company.  
     
     
         18 . The life insurance product of  claim 11 , wherein the death benefit is a variable death benefit.  
     
     
         19 . The life insurance product of  claim 18 , wherein the death benefit varies in accordance with the value of the investment assets.  
     
     
         20 . The life insurance product of  claim 19 , wherein the death benefit is the minimum necessary to maintain the insurance product as tax advantaged insurance.  
     
     
         21 . A system for servicing insurance products offered to clients of an asset manager, said insurance products including a death benefit from an insurance policy provided by an insurance company and investment vehicles associated with the death benefit, said system comprising: 
 a computer system adapted to administer client accounts managed by the asset manager, said client accounts including accounts in said insurance products managed by said asset manager; and    a client interface configured to make available to said clients of the asset manager purchasing the insurance products, information relating to the client accounts administered by the computer system, including the accounts of the insurance product managed by the asset manager.    
     
     
         22 . The system of  claim 21 , wherein the client interface is accessible via a communications network.  
     
     
         23 . The system of  claim 22 , wherein the computer system is further configured to exchange information with the insurance company related to said death benefit.  
     
     
         24 . The system of  claim 23 , wherein the computer system forwards a fee to the insurance company related to said death benefit.  
     
     
         25 . The system of  claim 24 , wherein the accounts of the insurance product managed by the asset manager comprise sub-accounts and the fee is determined in accordance with the value of the sub-accounts.  
     
     
         26 . The system of  claim 21 , wherein the client interface makes available the information relating to the accounts of the insurance product managed by the asset manager and information relating to the death benefit of the insurance product.  
     
     
         27 . The system of  claim 21 , wherein the computer system administers the accounts of the insurance product of a client managed by the asset manager.  
     
     
         28 . A method of developing an insurance product that includes a death benefit and associated investment vehicles co-sponsored by an insurance company and an asset manager, said method comprising: 
 registering the asset manager as a representative of the insurance company;    executing a participation agreement that appoints the asset manager's fund management as managers of the investment vehicles;    providing a life insurance policy chassis, and accompanying licenses and permissions to the asset manager; and    establishing mechanisms for the reporting of assets under management by the asset manager, the assessment of fees, and transfer of funds from the asset manager to the insurance company.    
     
     
         29 . The method of  claim 28 , wherein the insurance company administers and services the death benefit in the insurance product and the asset manager separately manages, administers and services the investment vehicles in the insurance product.  
     
     
         30 . The method of  claim 29 , wherein the insurance company and the asset manager provide separate client access.  
     
     
         31 . A method of insuring a customer through a variable life insurance policy having a death benefit and investment assets, the method comprising: 
 allocating the investment assets of the variable life insurance policy to at least one investment fund or at least one investment sub account;    charging the customer cost of insurance fees, the cost of insurance fees being guaranteed for the life of the insurance policy; and    providing a variable death benefit associated with the policy value upon the death of the customer, the variable death benefit varying in accordance with the value of the investment assets.    
     
     
         32 . The method of  claim 31 , wherein the suitable customers are identified by an asset manager currently managing the customer's assets according to criteria.  
     
     
         33 . The method of  claim 32 , wherein the criteria comprises the age of the customers.  
     
     
         34 . The method of  claim 32 , wherein the criteria comprises the amount of assets of the customers.  
     
     
         35 . The method of  claim 32 , wherein the criteria comprises financial indicators of the customers.  
     
     
         36 . The method of  claim 31 , wherein the asset manager allocates the life insurance policy assets to the at least one investment fund or at least one investment sub account managed by the asset manager; and the asset manager controls the life insurance policy assets.  
     
     
         37 . The method of  claim 31 , wherein the guaranteed cost of insurance fees charged to the customer is a fixed percentage of the value of the life insurance policy.  
     
     
         38 . The method of  claim 37 , wherein the guaranteed cost of insurance fees charged to the customer is predetermined by an algorithm.  
     
     
         39 . The method of  claim 31 , wherein the variable death benefit is the minimum necessary to maintain the insurance policy as a tax advantaged insurance policy.  
     
     
         40 . A method of providing a variable life insurance contract that includes a death benefit funded from associated investment assets, comprising: 
 making available to respective clients of a plurality of investment fund managers a variable life insurance contract which provides that the client's investment fund manager manages the associated investment assets which fund the death benefit of the respective contract;    for each contract entered into by a client of an investment fund manager, a death benefit insurer providing the death benefit and the respective investment fund manager managing the associated investment assets and compensating the death benefit insurer from at least one of: return on the associated investment assets or the associated investment assets.    
     
     
         41 . The method of  claim 40 , further comprising: a death benefit insurer making available the variable life insurance contract.  
     
     
         42 . The method of  claim 40 , further comprising: the respective investment fund managers making available the variable life insurance contract.  
     
     
         43 . The method of  claim 40 , further comprising making the variable life insurance contract available to respective clients selected in accordance with at least one criterion based on the client's assets.  
     
     
         44 . The method of  claim 40 , further comprising investing the associated investment assets in at least one investment fund or at least one investment sub account.  
     
     
         45 . The method of  claim 44 , further comprising the respective investment fund manager selecting the at least one investment fund or at least one investment sub account in which to invest the associated investment assets.  
     
     
         46 . The method of  claim 44 , further comprising the respective client selecting the at least one investment fund or at least one investment sub account in which to invest the associated investment assets.  
     
     
         47 . The method of  claim 40 , further comprising compensating the death benefit insurer a guaranteed fee from return on the associated investment assets and/or from the associated investment assets.  
     
     
         48 . The method of  claim 47 , further comprising fixing the guaranteed fee to a percentage of the account value.  
     
     
         49 . The method of  claim 48 , further obtaining guaranteed percentage based on factors.  
     
     
         50 . A system for offering a variable life insurance contract that includes a death benefit funded from associated investment assets, comprising: 
 an investment fund manager interface configured for use by an investment fund manager to make available to respective clients of the investment fund manager a variable life insurance contract, and manage the associated investment assets which fund the death benefit of the respective contract; and    a death benefit insurer interface configured for use by a death benefit insurer to provide the death benefit for each respective contract, determine a fixed compensation fee to provide the death benefit, and obtain the fixed compensation fee from the investment fund manager;    wherein the investment fund manager interface and the death benefit insurer interface are connected over a communication network.