“System and Method for Optimizing the Selection of Permanent Life Insurance Policies for Use in Leverage Life Insurance Structures” in Patent…
"System and Method for Optimizing the Selection of Permanent Life Insurance Policies for Use in Leverage Life Insurance Structures" in Patent Application Approval Process (USPTO 20180182040)
By a
This patent application has not been assigned to a company or institution.
The following quote was obtained by the news editors from the background information supplied by the inventors: "Leveraged life insurance structures require permanent life insurance with cash value owned by a client who can afford the premiums and who can afford debt-servicing the structure, and a willing lender.
"Optimizing leverage life insurance structures requires selecting the best possible permanent life insurance policy for each measuring life. This involves selecting a policy from any number of insurers for its internal metrics such as net cost of pure insurance (also referred to as 'NCPI' herein), guaranteed dividends, and amount of permitted over funding. It also involves using various credit conditions and various cost-of-funds and client tax rates, and demonstrating a clear internal rate of return (also referred to as 'IRR' herein) benefit for the client.
"There currently is no system or method which can compare the net benefits of a leveraged life insurance structure in an objective and neutrally-verifiable manner. There are in-market tools for cost-efficient pricing of term insurance (such as Kanetix.ca.TM. for example), but these are basic tools which select a policy based on a paid premium for a set amount of insurance for a set term. There are no tools to select a policy based on leveraged life design.
"Therefore there is a need for a system and method that optimizes the selection of permanent life insurance policies delivering results targeted to address the needs of the life insurance agent, the client, the client's accountant, the lender, and third party investors who would purchase the derivative financial instruments sold by the lender backed by the cash value assigned to it from the client.
"This background information is provided to reveal information believed by the applicant to be of possible relevance to the present invention. No admission is necessarily intended, nor should be construed, that any of the preceding information constitutes prior art against the present invention.
"Citation or identification of any document in this application is not an admission that such document is available as prior art to the present invention."
In addition to the background information obtained for this patent application, NewsRx journalists also obtained the inventor's summary information for this patent application: "An object of the present invention is to provide a method for optimizing the selection of permanent life insurance policies for use in leverage life insurance structures. In accordance with an aspect of the present invention, at least one raw data set from at least one insurance provider is entered into a permanent insurance selection optimization platform input interface; inputting at least one condition of credit and cost-of-funds data from a lender into a permanent insurance selection optimization platform input interface; running a selection module to complete the optimization of the selection of permanent life insurance policies; generating a result specifying the net annual cost to a client in all of the tested years; generating a result specifying the internal rate of return delivered to the client for each of the tested years based on their net cost of funds; generating a result specifying the collateral required by the lender to satisfy credit conditions through all tested years; generating a result specifying the interpolated debt service coverage ratio for the client for all tested years; generating a result specifying the excess cash value on the lender's balance sheet through all tested years; generating a result specifying the actuarially risk-weighted for the lender to put same on it's balance sheet as part of Tier 2 capital; conglomerating risk-weighted balance sheet assets based on the generated results; and informing the lender of the amount of risk-weighted assets which can be securitized.
"In accordance with another aspect of the present invention, there is provided a system for optimizing the selection of permanent life insurance policies for use in leverage life insurance structures. The system will utilize at least one client seeking a permanent life insurance policy; at least one lender seeking to leverage life insurance structures; at least one insurance provider desiring to provide a client with a permanent life insurance policy; a permanent insurance selection optimization platform administrator; a permanent insurance selection optimization platform further which may comprise a permanent insurance selection optimization platform user interface, and at least one selection module; and at least one database configured to store information related to the at least one client, the at least one lender, the at least one insurance provider, the insurance selection optimization platform, the permanent insurance selection optimization platform user interface, and the at least one selection module.
"Accordingly, it is an object of the invention not to encompass within the invention any previously known product, process of making the product, or method of using the product such that Applicants reserve the right and hereby disclose a disclaimer of any previously known product, process, or method. It is further noted that the invention does not intend to encompass within the scope of the invention any product, process, or making of the product or method of using the product, which does not meet the written description and enablement requirements of the USPTO (35 U.S.C. .sctn. 112, first paragraph) or the EPO (Article 83 of the EPC), such that Applicants reserve the right and hereby disclose a disclaimer of any previously described product, process of making the product, or method of using the product. It may be advantageous in the practice of the invention to be in compliance with Art. 53© EPC and Rule 28(b) and © EPC. Nothing herein is to be construed as a promise.
"It is noted that in this disclosure and particularly in the claims and/or paragraphs, terms such as 'comprises', 'comprised', 'comprising' and the like can have the meaning attributed to it in
"These and other embodiments are disclosed or are obvious from and encompassed by, the following Detailed Description."
URL and more information on this patent application, see: Clark, Rodney. System and Method for Optimizing the Selection of Permanent Life Insurance Policies for Use in Leverage Life Insurance Structures. Filed
Keywords for this news article include: Patent Application, Health and Medicine, Insurance Companies.
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