Financial Instrument Utilizing an Optional Benefit Election

• US 20080082369A1
• Filed: 09/14/2006
• Published: 04/03/2008
• Est. Priority Date: 09/14/2006
• Status: Active Grant

• Current Assignee: Empower Annuity Insurance Company of America
• Original Assignee: Prudential Insurance Company of America (Prudential Financial Incorporated)
• Inventors: Foley, Mark J., Carlson, Peter C., Walder, Brent W.
• Granted Patent: US 7,698,201 B2
• Time in Patent Office: Days
• US Class Current: 705/4
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

According to one embodiment of the invention, a financial instrument includes an account with an account balance that changes over time, wherein at least part of the account balance may be discretionarily withdrawn and wherein the initial account balance is based upon an initial deposit; a guarantee that a beneficiary may periodically receive a transfer of an amount of money for the life of a first designated party, wherein the transfer may be due to withdrawal from the account or due to benefit payments made to the beneficiary, provided that the amount may vary based upon withdrawals from the account in excess of a particular limit; and an option to modify the guarantee such that upon election the beneficiary may periodically receive the transfer of the amount of money for the longer of the life of the first designated party and the life of a second designated party.

Claims

1. A financial instrument management system, comprising:

software stored on a computer-readable medium and operable to calculate a fee for a financial instrument, the financial instrument comprising;

an account with an account balance that changes over time, wherein at least part of the account balance may be discretionarily withdrawn and wherein the initial account balance is based upon an initial deposit;

a guarantee that a beneficiary may periodically receive a transfer of an amount of money for the life of a first designated party, wherein the transfer may be due to withdrawal from the account or due to benefit payments made to the beneficiary, provided that the amount may vary based upon withdrawals from the account in excess of a particular limit; and

an option to modify the guarantee such that upon election the beneficiary may periodically receive the transfer of the amount of money for the longer of the life of the first designated party and the life of a second designated party.

2. The system of claim 1, wherein the option may be elected at the time of the first transfer of the amount of money to the beneficiary.

3. The system of claim 1, wherein the option may be elected at anytime during an option period beginning on the date of the initial deposit and ending on the date of the first transfer of the amount of money to the beneficiary.

4. The system of claim 1, wherein the option may be elected at anytime during an option period that extends for five years from the date of the initial deposit.

5. The system of claim 1, wherein the second designated party comprises a spouse of the first designated party.

6. The system of claim 1, wherein the beneficiary comprises the second designated party.

7. The system of claim 1, wherein the amount of money is based in part on the age of the first designated party on the date of the first transfer or, if the option is elected, the amount of money is based in part on the age of the younger of the first designated party and the second designated party on the date of the first transfer.

8. A financial instrument comprising:

an account with an account balance that changes over time, wherein at least part of the account balance may be discretionarily withdrawn and wherein the initial account balance is based upon an initial deposit;

a guarantee that a beneficiary may periodically receive a transfer of an amount of money for the life of a first designated party, wherein the transfer may be due to withdrawal from the account or due to benefit payments made to the beneficiary, provided that the amount may vary based upon withdrawals from the account in excess of a particular limit; and

an option to modify the guarantee such that upon election the beneficiary may periodically receive the transfer of the amount of money for the longer of the life of the first designated party and the life of a second designated party.

9. The financial instrument of claim 8, wherein the option may be elected at the time of the first transfer of the amount of money to the beneficiary.

10. The financial instrument of claim 8, wherein the option may be elected at anytime during an option period beginning on the date of the initial deposit and ending on the date of the first transfer of the amount of money to the beneficiary.

11. The financial instrument of claim 8, wherein the option may be elected at anytime during an option period that extends for five years from the date of the initial deposit.

12. The financial instrument of claim 8, wherein the second designated party comprises a spouse of the first designated party.

13. The financial instrument of claim 8, wherein the beneficiary comprises the second designated party.

14. The financial instrument of claim 8, wherein the amount of money is based in part on the age of the first designated party on the date of the first transfer or, if the option is elected, the amount of money is based in part on the age of the younger of the first designated party and the second designated party on the date of the first transfer.

15. A financial instrument comprising:

an account with an account balance that changes over time, wherein at least part of the account balance may be discretionarily withdrawn and wherein the initial account balance is based upon an initial deposit;

a guarantee that a beneficiary may periodically receive a transfer of an amount of money for the life of a designated party, wherein the transfer may be due to withdrawal from the account or due to benefit payments made to the beneficiary, provided that the amount may vary based upon withdrawals from the account in excess of a particular limit; and

an option to modify the guarantee such that upon election the beneficiary may periodically receive the transfer of the amount of money for the longer of the life of the designated party and the life of a spouse of the designated party;

wherein the option may be elected at the time of the first transfer of the amount of money to the beneficiary.

16. The financial instrument of claim 15, wherein the beneficiary comprises the spouse of the designated party.

17. The financial instrument of claim 15, wherein the amount of money is based in part on the age of the designated party on the date of the first transfer or, if the option is elected, the amount of money is based in part on the age of the younger of the designated party and the spouse of the designated party on the date of the first transfer.

18. A financial instrument management system, comprising:

software stored on a computer-readable medium and operable to;

calculate a first fee for a financial instrument, the financial instrument comprising;

an account with an account balance that changes over time, wherein at least part of the account balance may be discretionarily withdrawn and wherein the initial account balance is based upon an initial deposit;

a guarantee that a beneficiary may periodically receive a transfer of an amount of money for the life of a first designated party, wherein the transfer may be due to withdrawal from the account or due to benefit payments made to the beneficiary, provided that the amount may vary based upon withdrawals from the account in excess of a particular limit; and

an option to modify the guarantee such that upon election the beneficiary may periodically receive the transfer of the amount of money for the longer of the life of the first designated party and the life of a second designated party; and

calculate a second fee for the financial instrument;

wherein the first fee is charged at least in part for providing the guarantee that the beneficiary may periodically receive the transfer of the amount of money for the life of the first designated party; and

wherein the second fee is charged at least in part for providing the modified guarantee that the beneficiary may periodically receive the transfer of the amount of money for the longer of the life of the first designated party and the life of the second designated party.

19. The system of claim 18, wherein the option may be elected at the time of the first transfer of the amount of money to the beneficiary.

20. The system of claim 18, wherein the option may be elected at anytime during an option period beginning on the date of the initial deposit and ending on the date of the first transfer of the amount of money to the beneficiary.

21. The system of claim 18, wherein the option may be elected at anytime during an option period that extends for five years from the date of the initial deposit.

22. The system of claim 18, wherein the second designated party comprises a spouse of the first designated party.

23. The system of claim 18, wherein the beneficiary comprises the second designated party.

24. The system of claim 18, wherein the amount of money is based in part on the age of the first designated party on the date of the first transfer or, if the option is elected, the amount of money is based in part on the age of the younger of the first designated party and the second designated party on the date of the first transfer.