Methods and systems for providing liquidity options and permanent legacy benefits for annuities
First Claim
1. A method of providing an annuity having a guarantee period comprising:
- obtaining information useful for issuing an annuity from an individual; and
computing an annuity variable selected from the group consisting of an annuity premium and future income payments, the annuity variable computed based at least partially on the information obtained from the individual, wherein the annuity comprises at least one liquidity option allowing a holder of the liquidity option to exercise the option and to convert therewith a portion of a value of the annuity, computed at least in part based on the value of future income payments, into a liquid asset.
1 Assignment
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Accused Products
Abstract
This invention relates to methods and systems that provide annuities with at least one liquidity option that allows the holder of the liquidity option to exercise the option and convert therewith a portion of a value of the annuity into a liquid asset, such as cash or a cash value, based on the value of future income payments, which can include payments that are guaranteed to be paid for the duration of one or more lifetime. The conversion may be in a variety of forms, such as an advance of at least a portion of the future income payments, or in the form a lump sum distribution of at least a portion of a commuted value of the annuity computed based at least in part on the present value, at the time of the conversion, of future income payments for the remainder of the guarantee period. This invention further relates to methods and systems that provide annuities including a liquid legacy benefit option that provide a lump sum distribution of a portion of an annuity premium to a beneficiary at the end of the guarantee period that is substantially certain at the inception of the annuity.
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Citations
48 Claims
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1. A method of providing an annuity having a guarantee period comprising:
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obtaining information useful for issuing an annuity from an individual; and
computing an annuity variable selected from the group consisting of an annuity premium and future income payments, the annuity variable computed based at least partially on the information obtained from the individual, wherein the annuity comprises at least one liquidity option allowing a holder of the liquidity option to exercise the option and to convert therewith a portion of a value of the annuity, computed at least in part based on the value of future income payments, into a liquid asset. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19)
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20. A method of providing an annuity having a guarantee period comprising:
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obtaining information useful for issuing an annuity from an individual; and
computing an annuity variable selected from the group consisting of an annuity premium and future income payments, the annuity variable computed based at least partially on the information obtained from the individual, wherein the annuity comprises at least one liquidity option allowing a holder of the option to convert a portion of a value of the annuity into a liquid asset, the conversion comprising an advance of at least a portion of the future income payment.
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21. A method of providing an annuity having a guarantee period comprising:
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obtaining information useful for issuing an annuity from an individual; and
computing an annuity selected variable from the group consisting of an annuity premium and future income payments, the annuity variable computed based at least partially on the information obtained from the individual, wherein the annuity comprises at least one liquidity option allowing a holder of the option to convert a portion of a value of the annuity into a liquid asset, the conversion comprising an advance of a plurality of future income payments, and wherein the future income payments due to the holder of the liquidity option, subsequent to the advance, cease for a period of time to account for the advance of future income payments.
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22. A method of providing an annuity having a guarantee period comprising:
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obtaining information useful for issuing an annuity from an individual; and
computing an annuity variable selected from the group consisting of an annuity premium and future income payments, the annuity variable computed based at least partially on the information obtained from the individual, wherein the annuity comprises at least one liquidity option allowing a holder of the liquidity option to convert a portion of a value of the annuity into a liquid asset, the conversion comprising a lump sum distribution of at least a portion of a commuted value of the annuity computed based at least in part on the present value, at the time of the conversion, of future income payments for the remainder of the guarantee period.
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23. A method of providing an annuity having a guarantee period comprising:
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obtaining information useful for issuing an annuity from an individual; and
computing an annuity variable selected from the group consisting of an annuity premium and future income payments, the annuity variable computed based at least partially on the information obtained from the individual, wherein the annuity comprises at least one liquidity option allowing a holder of the liquidity option to convert a portion of a value of the annuity into a liquid asset, and a guarantee period based on the life of an annuitant, the conversion comprising a lump sum distribution of at least a portion of a commuted value of the annuity computed based at least in part on the present value, at the time of the conversion, of future income payments for the life of the annuitant.
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24. A method of providing an annuity having a guarantee period comprising:
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obtaining information useful for issuing an annuity from an individual; and
computing an annuity variable selected from the group consisting of an annuity premium and future income payments, the annuity variable computed based at least partially on the information obtained from the individual, wherein the annuity comprises at least one liquidity option allowing a holder of the liquidity option to convert a portion of a value of the annuity into a liquid asset, and a guarantee period based on the life of an annuitant, the conversion comprising a lump sum distribution of at least a portion of a commuted value of the annuity computed based at least in part on the present value, at the time of the conversion, of future income payments for the life of the annuitant.
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25. A method of providing an annuity having a guarantee period comprising:
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obtaining information useful for issuing an annuity from an individual; and
computing an annuity variable selected from the group consisting of an annuity premium and future income payments, the annuity variable computed based at least partially on the information obtained from the individual, wherein the annuity comprises at least one liquidity option allowing a holder of the liquidity option to convert a portion of a value of the annuity into a liquid asset once after annuity payments begin, and a guarantee period based on the life of an annuitant, the conversion comprising a lump sum distribution of about 30% of a commuted value of the annuity computed based at least in part on the present value, at the time of the conversion, of future income payments for the life of the annuitant.
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26. A method of providing an annuity having a guarantee period comprising:
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obtaining information useful for issuing an annuity from an individual; and
computing future income payments, the annuity variable computed based at least in part on a legacy benefit option which provides a lump sum distribution of a portion of an annuity premium substantially certain at inception of the annuity to a beneficiary upon the death of at least one annuitant. - View Dependent Claims (27, 28, 29)
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30. A method of facilitating distribution of annuity payments comprising:
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receiving a demand for a liquid distribution; and
computing the liquid distribution according to at least one liquidity option of an annuity, the liquidity option allowing a holder of the liquidity option to convert a portion of the value of the annuity into a liquid asset, the value of the annuity computed at least in part based on a value of future income payments. - View Dependent Claims (31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44)
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45. A method of facilitating distribution of annuity payments comprising:
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receiving a demand for a liquid distribution; and
computing the liquid distribution according to at least one liquidity option of an annuity, the liquidity option allowing a holder of the liquidity option to convert a portion of the value of the annuity into a liquid asset, the liquid distribution in the form of an advance of a plurality of future income payments.
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46. A method of facilitating distribution of annuity payments comprising:
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receiving a demand for a liquid distribution;
computing the liquid distribution according to at least one liquidity option of an annuity, the liquidity option allowing a holder of the liquidity option to convert a portion of the value of the annuity into a liquid asset, the liquid distribution in the form of an advance for a plurality of future income payments;
making the liquid distribution; and
ceasing future income payments due to the holder of the liquidity option subsequent to the advance for a period of time to account for the advance of the future income payments.
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47. A method of facilitating distribution of annuity payments comprising:
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receiving a demand for a liquid distribution; and
computing the liquid distribution according to at least one liquidity option of an annuity, the liquidity option allowing a holder of the liquidity option to convert a portion of the value of the annuity into a liquid asset, the liquid distribution in the form of a lump sum distribution of at least a portion of a commuted value of the annuity computed based at least in part on the present value, at the time of the conversion, of future income payments for the remainder of the guarantee period.
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48. A method of facilitating distribution of annuity payments comprising:
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receiving a demand for a liquid distribution; and
computing the liquid distribution according to at least one liquidity option of an annuity, the liquidity option allowing a holder of the liquidity option to convert a portion of the value of the annuity into a liquid asset, the annuity comprising a guarantee period based on the life of an annuitant, the liquid distribution in the form of a lump sum distribution of at least a portion of a commuted value of the annuity computed based at least in part on the present value, at the time of the conversion, of future income payments expected to be paid out for the life of the annuitant.
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Specification