A METHOD OF MANAGING A LIFE INSURANCE PLAN AND A SYSTEM
THEREFOR
BACKGROUND OF THE INVENTION
The present invention relates to a method of managing a life insurance plan and a system therefor.
Conventionally, life insurance plans operate on the basis that an insured person, sometimes referred to as an insured life, pays a premium to the life insurer, and the life insurer pays a predetermined sum, referred to as the sum assured, to the insured life or his/her beneficiary on the occurrence of an insured event. Typical insured events are the insured life suffering disability, contracting a dread disease or dying.
It will be appreciated that the insured events are events which occur to the insured life. However, with limited fraii care facilities in certain countries, many people face the burden of iooklng after,sick parents as they age or are no longer able to care for themselves.
This places a financial burden on the insured person for which they have no assistance available through their traditional life cover.
The present invention seeks to address this.
SUMMARY
According to one example embodiment there is provided, a method of managing a life insurance plan, the method including:
receiving a premium from an insured life;
on occurrence of an insured event to the insured life, paying out a predetermined amount to the insured life; and
on occurrence of an insured event to a parent of the insured life, paying out a predetermined amount to the insured iife.
The Insured event may be at least one of disability, contracting at least one of a plurality of predetermined diseases or dying.
The insured event for the parent or parents of the insured life may be contracting at least one of a plurality of predetermined diseases.
According to another example embodiment there is further provided an electronic system for managing a life insurance plan includes:
a memory for storing:
information relating to premiums received from an insured iife; and
information relating to parents of the insured iife; and
a processor disposed in communication with the memory, the processor being adapted to:
receive data indicating the occurrence of an insured event to the insured life, and in response thereto to effect the paying out of a predetermined amount to the insured life; and
receive data indicating the occurrence of an insured event to a parent of the insured life, and in response thereto to effect the paying out of a predetermined amount to the insured life.
BRIEF DESCRIPTION OF THE DRAWINGS
Figure 1 is a flow chart illustrating the methodology of an example
embodiment; and
Figure 2 is a block diagram illustrating an example system to
implement the methodologies described herein,
DESCRIPTION OF EMBODIMENTS
The inversion finds application in the field of managing the business and operation of a life insurance plan.
The present invention may be implemented by a traditional life insurance plan operator for its members or may be implemented by another party.
Conventionally, life insurance plans operate on the basis that an insured person, sometimes referred to as an insured life, pays a premium to the Iife insurer, and the life insurer pays a predetermined sum, referred to as the sum asswed, to the insured life or his/her beneficiary on the occurrence of an insured event. Typical insured events are the insured life sufferirig disability, contracting a dread disease or dying.
Convenfionai life-insurance plans cover events which occur to the insured life.
However, protection of the insured person's lifestyle is broader than coverage for life changing events happening to the insured life.
The methodology.described below protects the lifestyle of the insured life should a parent of the insured life suffer a life changing event, such as a severe illness.
Referring to the accompanying Figures, in an example embodiment, a method includes receiving a premium from an insured life (block 10).
On occurrence of an insured event to the insured iife, paying out a predetermined amount to the insured life (block 12).
On occurrence of an insured event to a parent of the insured life, paying out a predetermined amount to the insured life (block 14).
The Insured event may be at least one of disability, contracting at least one of a plurality of predetermined diseases or dying.
The Insured event for the parent or parents of the insured life may be contracting at least one of a plurality of predetermined diseases.
In one example, a claim is payable should a parent not be able to perform 4 out of 6 Activities of Daily Living defined by the life insurer, which must be measured 3 months after suffering a severe illness.
A typical benefit payable may amount to 5% of the Insured life's severe illness benefit per parent, subject to a maximum of R100 000 for both parents. In one example, only one claim per parent will be allowed. The benefit payout will not impact the cover of the insured life.
The life insurer may also offer additional top up cover up, for example, up to R900 000 per parent.
In terms of the automatic inclusion of cover, all pre-existing medical conditions are excluded and a parent will only be covered if there are no disclosures relating to the parent in the family history section of the policyholder's application form.
Parents are underwritten for any additional top up cover required.
The above methodology may be implemented using a system including a memory 20 for storing information relating to premiums received from an insured life and information relating to parents of the insured life.
A processor 22 disposed in communication with the memory is adapted to receive data indicating the occurrence of an insured event to the insured life, and In response thereto to effect the paying out of a predetermined amount to the insured life. The processor is also adapted to receive data indicating the occurrence of an insured event to a parent of the insured irfe, and in response thereto to effect the paying out of a predetennined amount to the insured life.
The processor may include modules which are implemented by a machine-readable medium embodying instructions which, when executed by a machine, cause the machine to perform any of the methods described above.
It will be appreciated that embodiments of the present invention are not limited to such architecture, and could equally well find application in a distributed, or peer-to-peer, architecture system. Thus the modules Illustrated could be located on one or more 'servers operated by one or more Institutions.

CLAIMS:
1. A method of managing a life insurance pian, the method including:
receiving a premium from an insured life;
on occurrence of an insured event to the insured iife, paying out a predetermined amount to the insured life; and
on occurrence of an insured event to a parent of the insured life, paying out a predetermined amount to the insured life.
2. A method according to claim 1 wherein the insured event is at least one of disability; contracting at ieast one of a plurality of predetermined diseases; and dying.
3. A method according to claim 1 or ciaim 2 wherein the insured event for the parent or parents of the insured iife is contracting at least one of a plurality of predetermined diseases.
4. A method according to ciaim 3 wherein the insured event is at least one of disability; contracting at least one of a plurality of predetermined diseases; and dying.
5. An electronic system for managing a life insurance plan includes:
a memory for storing:
information relating to premiums received from an insured life; and
information relating to parents of the insured life; and
a processor disposec in communication with tne memory, the processor being adapted ic:
receive data indicating the occurrence of an insurec even; tc the insured life, anc in response thereto tc effect tne paying out of a predetermined amount to tne insured lite anc
receive data indicating tne occurrence of an insurec even: tc a parent of the insurec life, anc in response thereic tc effect the paying OUT of a predetermined amount to the insured life.
6. A system according to ciaim 5 wherein the insurec event is at least one of disability; contracting at ieas: one of a blurality of predeterminec diseases; anc dying.
7. A system according to claim: 5 or claim 6 wnerein the insurec event tor the parent or parents of the insured life- is contracting at least one of a plurality of predeterminec diseases
E. A system according to ciaim T wnereir tne insurec event is at ieas: one of disability; contracting at ieas: one of a plurality of predetermined diseases; anc bying.