Flexible Varying Premium Option for Long Term Care Insurance and Critical Illness Insurance

Abstract

Flexible, varying long term care insurance programs are determined. Input variables such as issue age, targeted present value and year-to-year premium relationship are supplied, as are some members of a set of process variables. A non-supplied process variable is calculated based on the input variables and the supplied process variables. An insurance program based on the supplied variables and the calculated process variable is then determined, such that the premium schedule increases (or alternatively, decreases) over time to at least one leveling point, at which premiums become level.

What is claimed is: 
     
         1 . A computer implemented method for calculating a flexible, varying insurance program, the method comprising the steps of:
 receiving, by a computer, a plurality of input variables, comprising at least an issue age, a targeted present value and a year-to-year premium relationship;   receiving, by a computer, a plurality of process variables;   calculating, by a computer, a non-received process variable, based on received variables; and   calculating, by a computer, a set of benefits and a corresponding charge schedule based on the received variables and the calculated process variable, such that the calculated charge schedule varies over time but becomes level at at least one specific point, according to the year-to-year premium relationship.   
     
     
         2 . The method of  claim 1  further comprising:
 calculating, by a computer, a charge schedule comprising at least one period during which premiums incrementally raise to a leveling point, the calculated set of benefits and the calculated charge schedule being informed by prefunding during the at least one period during which premiums incrementally raise to the leveling point. 
 
     
     
         3 . The method of  claim 1  further comprising:
 calculating, by a computer, a charge schedule with comprising multiple leveling points. 
 
     
     
         4 . The method of  claim 1  further comprising:
 calculating, by a computer, a charge schedule with at least one period during which premiums decrease to a leveling point. 
 
     
     
         5 . The method of  claim 1  further comprising:
 calculating, by a computer, a charge schedule wherein premiums incrementally raise to a single leveling point, at which the premiums become level for the remainder of the calculated charge schedule, the calculated set of benefits and the calculated charge schedule being informed by prefunding during the period during which premiums incrementally raise to the leveling point. 
 
     
     
         6 . The method of  claim 5  further comprising:
 receiving, by a computer, three process variables from a group consisting of:
 a set of policy features; 
 an initial premium amount; 
 a leveling point; and 
 an ultimate level premium; 
 
 and calculating, by a computer, the fourth process variable of the group based on received input variables and the three received process variables. 
 
     
     
         7 . The method of  claim 6  wherein:
 the set of policy features specifies a provision for inflation protection. 
 
     
     
         8 . The method of  claim 6  further comprising:
 calculating, by a computer, the set of benefits and the charge schedule such that benefits and premiums can be frozen at any point in the calculated charge schedule. 
 
     
     
         9 . The method of  claim 1  wherein:
 the varying insurance program further comprises a varying critical illness insurance program. 
 
     
     
         10 . The method of  claim 1  wherein:
 the varying insurance program further comprises a varying long term care insurance program. 
 
     
     
         11 . At least one non-transitory computer readable storing a computer program product for calculating a flexible, varying insurance program, the computer program product comprising:
 program code for receiving, by a computer, a plurality of input variables, comprising at least an issue age, a targeted present value and a year-to-year premium relationship;   program code for receiving, by a computer, a plurality of process variables;   program code for calculating, by a computer, a non-received process variable, based on received variables; and   program code for calculating, by a computer, a set of benefits and a corresponding charge schedule based on the received variables and the calculated process variable, such that the calculated charge schedule varies over time but becomes level at at least one specific point, according to the year-to-year premium relationship.   
     
     
         12 . The computer program product of  claim 11  further comprising:
 program code for calculating, by a computer, a charge schedule comprising at least one period during which premiums incrementally raise to a leveling point, the calculated set of benefits and the calculated charge schedule being informed by prefunding during the at least one period during which premiums incrementally raise to the leveling point. 
 
     
     
         13 . The computer program product of  claim 11  further comprising:
 program code for calculating, by a computer, a charge schedule with comprising multiple leveling points. 
 
     
     
         14 . The computer program product of  claim 11  further comprising:
 program code for calculating, by a computer, a charge schedule with at least one period during which premiums decrease to a leveling point. 
 
     
     
         15 . The computer program product of  claim 11  further comprising:
 program code for calculating, by a computer, a charge schedule wherein premiums incrementally raise to a single leveling point, at which the premiums become level for the remainder of the calculated charge schedule, the calculated set of benefits and the calculated charge schedule being informed by prefunding during the period during which premiums incrementally raise to the leveling point. 
 
     
     
         16 . The computer program product of  claim 15  further comprising:
 program code for receiving, by a computer, three process variables from a group consisting of:
 a set of policy features; 
 an initial premium amount; 
 a leveling point; and 
 an ultimate level premium; 
 
 and program code for calculating, by a computer, the fourth process variable of the group based on received input variables and the three received process variables. 
 
     
     
         17 . The computer program product of  claim 16  wherein:
 the set of policy features specifies a provision for inflation protection. 
 
     
     
         18 . The computer program product of  claim 16  further comprising:
 program code for calculating, by a computer, the set of benefits and the charge schedule such that benefits and premiums can be frozen at any point in the calculated charge schedule. 
 
     
     
         19 . The computer program product of  claim 11  wherein:
 the varying insurance program further comprises a varying critical illness insurance program. 
 
     
     
         20 . The computer program product of  claim 11  wherein:
 the varying insurance program further comprises a varying long term care insurance program.