Systems and methods for automated matching and conversion of term life insurance policies

Abstract

An exemplary aspect comprises a computer system with a receiving component that receives application information for an insurance policy that extends the term of an existing life insurance product, and is pre-paid for by a third party, the third party to be paid fees based on the customer's selection of one of a first option providing the customer with the right of first refusal to continue the insurance policy, and a second option providing the third party with the right of first refusal to continue the insurance policy; an underwriting component that determines whether the customer qualifies for the insurance policy; a pricing component that calculates the fees to be paid by the customer to the third party; and a closing component that provides relevant closing documentation for the insurance policy to at least the customer, the insurance company, and the third party.

1 . An automated computer system comprising:
 at least one processor, and   at least one non-transitory memory storing a computer executable instructions, which when executed by the at least one processor, causes said processor to operate as:   (a) a receiving component, configured to receive electronic application data for converting a convertible term life insurance policy of a policy owner into a permanent life insurance policy with an insurance company;   (b) an underwriting component, configured to automatically analyze the received electronic application data and determine whether the owner is a qualified customer for the conversion;   (c) a pricing component, configured to automatically analyze and determine the one or more pricing and costs requirements;   (d) a selection component, configured to select and analyze at least one permanent life insurance policy of the third party based at least partially on the determination of the underwriting component and the determination of the pricing component;   (d) a processing component, configured to facilitate conversion of the owner's convertible term life insurance policy into the permanent life insurance policy of the third party; and   (e) a generating component, configured to automatically generate an agreement to be executed between a third party and the policy owner, wherein the generated agreement comprises a plurality of contractual obligations between the third party and the owner for a specified period of time.   
     
     
         2 . The system of  claim 1 , wherein the system performs an iterative computerized selection of a permanent life insurance policy, financed at least in part by a third party, based on the plurality of the determined customer qualifications and further taking into account one or more pricing and cost requirements determined by the pricing component. 
     
     
         3 . The system of  claim 1 , wherein the determination by the underwriting component comprises an identification of conversion rights in the owner's convertible term life insurance and a determination of the permanent life insurance policy into which the convertible term life insurance may be converted. 
     
     
         4 . The system of  claim 1 , wherein the determination by the underwriting and the pricing component comprises an automated iterative analysis of a mortality assumptions and the one or more pricing and costs requirements. 
     
     
         5 . The computer system of  claim 1 , wherein the determination by the underwriting component further comprises a comparison of a past and current underwriter issue or risk class for the owner policy, and a determination whether there has been a shift in the issue or risk class for the policy owner. 
     
     
         6 . The computer system of  claim 1 , wherein the determination by the underwriting component further comprises an analysis of a past and present health status of at least one person specified in the owner policy. 
     
     
         7 . The system of  claim 1 , wherein the selection by the selection component selects at least one permanent life insurance policy of the third party that best fits the determined customer qualifications and further based on the determination of one or more pricing and cost requirements of the pricing component for the selected life insurance policy. 
     
     
         8 . The computer system of  claim 1 , wherein the determination by the pricing component comprises an automated iterative analysis of an expected rate of return for each permanent life insurance policy that fits a plurality of the determined customer qualifications and one or more pricing and cost requirements. 
     
     
         9 . The computer system of  claim 1 , wherein the determination of one or more pricing and costs requirements comprise a calculation of an issue expense, a calculation of a policy conversion costs, and a determination of a maintenance fees amount that the policy owner agrees to pay. 
     
     
         10 . The system of  claim 1 , wherein the generating component generates the agreement with a plurality of contractual obligations comprising:
 a first obligation in which the third party is obligated to pay premiums for the permanent life insurance policy to the insurance company that the owner is otherwise obligated to pay;   a second obligation in which the owner is obligated to pay one or more fees to the third party;   an assignment to one of the owner or the third party a first right to retain the permanent life insurance policy upon expiration of the specified period of time, and   a calculation of fees that the owner is obligated to pay to the third party.   
     
     
         11 . The computer system of  claim 10 , wherein the fees that the owner is obligated to pay to the third party are calculated at least partially as a sum of (a) a cash flow value, the cash flow value being a lower numeric value in a case where the first right is assigned to the third party than in a case where the first right is assigned to the owner, (b) expected premiums to be paid by the third party, and (c) expenses to be occurred by the third party in relation to the permanent life insurance policy, less (d) death benefits of the permanent life insurance policy. 
     
     
         12 . The computer system of  claim 10 , wherein the contractual obligations between the third party and the owner for a specified period of time include a right of first refusal, exercisable by either the policy owner or the third party. 
     
     
         13 . The computer system of  claim 12 , wherein in order to exercise said right of first refusal, the policy owner is required to repay premiums paid by the third party, and the assignment of the first right to retain the permanent life insurance policy is executed for the benefit of the policy owner upon repayment of the premiums. 
     
     
         14 . The computer system of  claim 13 , wherein the repayment of the premiums is secured by a collateral assignment recorded with said insurance company, and payment of the fees to the third party is collateralized by a death benefit of the insurance policy. 
     
     
         15 . The computer system of  claim 12 , wherein when the third party exercises the first refusal right, then the assignment is executed for the benefit of the third party and the premiums paid by the third party for the policy owner are deemed repaid. 
     
     
         16 . The computer system as in  claim 10 , wherein if the policy owner dies during a term or an extension period of the insurance policy, while the required premiums are paid by the third party, the third party is repaid the amount of the premiums paid from a death benefit of the insurance policy, and the owner's designated beneficiaries receive at least a portion of the balance of the death benefit. 
     
     
         17 . A computer system as in  claim 1 , wherein the permanent life insurance policy is issued through a split dollar program. 
     
     
         18 . A computerized method for automatically facilitating a conversion of an insurance policy, said method comprising:
 (a) receiving electronic application data for converting a convertible term life insurance policy of a policy owner into a permanent life insurance policy with an insurance company;   (b) automatically analyzing the received electronic application data and determining whether the owner is a qualified customer for the conversion;   (c) automatically analyzing and determining the one or more pricing and costs requirements for one or more life insurance policy;   (d) selecting and analyzing at least one permanent life insurance policy of the third party based at least partially on the determination whether the owner is a qualified customer for the conversion and based at least partially on the determination of one or more pricing and costs requirements;   (e) automatically generating an agreement to be executed between a third party and the policy owner, wherein the generated agreement comprises a plurality of contractual obligations between the third party and the owner for a specified period of time.   
     
     
         19 . The method of  claim 18 , further comprising:
 (f) executing the agreements for the conversion of the owner's convertible term life insurance policy into at least one permanent insurance policy of the third party.   
     
     
         20 . A computerized method for automatically generating agreements for conversion of an insurance policy, said method comprising:
 (a) transmitting electronic application data for converting a convertible term life insurance policy of a policy owner into a permanent life insurance policy with an insurance company;   (b) performing automated analysis on the transmitted electronic application data and determining whether the owner is a qualified customer for the conversion;   (c) performing automated analysis on the transmitted electronic application data and determining the one or more pricing and costs requirements for the conversion of one or more life insurance policy;   (d) selecting and analyzing at least one permanent life insurance policy of the party based at least partially on the determination whether the owner is a qualified customer for the conversion and based at least partially on the determination of one or more pricing and costs requirements;   (e) automatically generating an agreement to be executed between a third party and the policy owner, wherein the generated agreement comprises a plurality of contractual obligations between the third party and the owner for a specified period of time;   (f) transmitting the generated agreement to the owner of the owner of the convertible term life insurance policy and at least one third party for execution.