Program for Alternative Funding of Employee and Retiree Benefits

Abstract

An insurance program for funding benefits by maintaining assets in the insurance program that includes an employer or employee owned trust account and at least one life insurance contract or non-cancelable accident and health insurance contract obtained directly or indirectly from a captive insurance company. The life insurance contract or non-cancelable accident and health insurance contract is purchased with assets from the trust account and the captive insurance company is at least partially owned by the employer. When paying or reimbursing benefits, the employer or the trust may pay the benefit and if the employer pays the benefit, the trust may reimburse the employer.

1 . A computer implemented system for projecting, administering or managing a benefits funding system comprising:
 an input device for accepting user inputs related to the number of people receiving benefits from an employer;   a calculating module for calculating an initial amount and periodic amount that said employer should contribute to a trust account, said calculating means using at least said user input for calculating;   a determining module for determining premiums paid in a period, number of deaths in said period, amount of proceeds for claims received in said period, and investment earning in said period;   an accounting module for calculating, based on said premiums paid in said period, number of claims in said period, amount of proceeds for claims received in said period, investment earning in said period, and a tax effect, an amount of tax owed by said trust or said employer and an increase in assets of said employer;   a compiling module for compiling the number of people receiving benefits, said initial amount and said periodic amount that said employer should contribute to said trust, said premiums paid in said period, the number of claims in said period, the amount of proceeds for claims received in said period, investment earning received in said period; said tax effect, said amount of tax owed by said trust or said employer and said increase in assets of said employer, said compiling means compiling said information for said period and determining the same information for future, successive periods, said information for said current and future periods constituting complied information; and   a displaying device for displaying the compiled information in a user viewable form.   
     
     
         2 .- 22 . (canceled) 
     
     
         23 . A computer implemented system for administering or managing a benefits funding system comprising:
 input means for accepting user inputs related to the number of people receiving benefits from an employer;   calculating means for calculating an initial amount and periodic amount that said employer should contribute to a trust account, said calculating means using at least said user input for calculating;   determining means for determining premiums paid in a period, number of deaths or claims in said period, amount of death benefits or proceeds for claims received in said period, and investment earning in said period;   accounting means for calculating, based on said premiums paid in said period, number of deaths or claims in said period, amount of death benefits or proceeds for claims received in said period, investment earning in said period, and a tax effect, an amount of tax owed by said trust or said employer and an increase in assets of said employer;   compiling means for compiling the number of people receiving benefits, said initial amount and said periodic amount that said employer should contribute to said trust, said premiums paid in said period, the number of deaths or claims in said period, the amount of death benefits or proceeds for claims received in said period, investment earning received in said period; said tax effect, said amount of tax owed by said trust or said employer and said increase in assets of said employer, said compiling means compiling said information for said period and determining the same information for future, successive periods, said information for said current and future periods constituting complied information; and   displaying means for displaying the compiled information in a user viewable form.   
     
     
         24 . A method for funding benefits, said method comprising:
 funding an employer or employee owned trust account to aide said employer in providing benefits for employees or retirees; and   obtaining at least one life insurance contract or non-cancelable accident and health insurance contract from a captive insurance company with at least a portion of assets from the trust account;   wherein said trust is the beneficiary of said at least one life insurance contract or non-cancelable accident and health insurance contract.   
     
     
         25 . The method of  claim 24 , wherein said at least one life insurance contract or non-cancelable accident and health insurance contract is purchased from said third party life insurance company and reinsured by said captive insurance company. 
     
     
         26 . The method of  claim 24 , wherein: said employer pays said benefits to employees and said employer is reimbursed by said trust, or said trust pays said benefits directly to said employees. 
     
     
         27 . The method of  claim 24 , wherein at least one of said trust and said captive insurance company invests assets in commercially available vehicles to generate additional assets. 
     
     
         28 . The method of  claim 24 , wherein said captive insurance company invests at least a portion of assets in securities of said employer. 
     
     
         29 . The method of  claim 28 , wherein said captive insurance company invests assets in short term commercial paper of said employer. 
     
     
         30 . The method of  claim 24 , wherein said captive insurance company is at least partially owned by said employer. 
     
     
         31 . The method of  claim 24 , wherein said captive insurance company is a wholly owned subsidiary of said employer. 
     
     
         32 . The method of  claim 24 , wherein said benefits include at least one of health care benefits, retirement benefits, executive compensation, disability benefits, and life insurance. 
     
     
         33 . The method of  claim 24 , wherein said trust is a Voluntary Employee Benefit Association Trust. 
     
     
         34 . The method of  claim 24 , wherein said trust is a Rabbi Trust. 
     
     
         35 . The method of  claim 24 , wherein an insured on said at least one life insurance contract or non-cancelable accident and health insurance contract is an individual receiving said benefits from said employer. 
     
     
         36 . The method of  claim 24 , wherein said benefits are provided to at least one of an employee, a former employee, or a retiree. 
     
     
         37 . The method of  claim 24 , wherein said at least one life insurance contract or non-cancelable accident and health insurance contract is configured to optimize at least one of a cash value of said at least one life insurance contract or non-cancelable accident and health insurance contract for a predetermined period of time, a premium, a liability or another variable in accordance with an employees needs. 
     
     
         38 .- 49 . (canceled) 
     
     
         50 . The method of  claim 36 , wherein said at least one life insurance contract or non-cancelable accident and health insurance contract is configured to maximize a cash value of said at least one life insurance contract or non-cancelable accident and health insurance contract for a predetermined period of time, or to optimize at least one of a premium, a liability or another variable in accordance with an employees needs. 
     
     
         51 .- 61 . (canceled) 
     
     
         62 . A method for determining a benefits funding system using a computer system, said method comprising:
 inputting information regarding an employer, said information including at least one of employer assets and employer benefits liability;   calculating, based on said input information and at least one of a mortality assumption model and an insurance calculator, at least one of premiums for life insurance contracts or non-cancelable accident and health insurance contract, policy benefits, and investment income;   determining, based on said at least one of premiums for life insurance contracts or non-cancelable accident and health insurance contract, policy benefits, and investment income, an amount required to fund said trust;   reporting an amount of reinsurance to be obtained from a captive insurance company.