Method and system for a deferred variable annuity with lifetime benefit payments as a function of a predetermined age-based withdrawal percent table

• US 20090030739A1
• Filed: 12/05/2007
• Published: 01/29/2009
• Est. Priority Date: 07/24/2007
• Status: Active Grant

• Current Assignee: Talcott Resolution Life Insurance Co. (DSG)
• Original Assignee: Hartford Fire Insurance Company (The Hartford Financial Services Group, Inc.)
• Inventors: Weiss, Joseph M., Tatro, Charles D.
• Granted Patent: US 7,877,307 B2
• Time in Patent Office: Days
• US Class Current: 705/4
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A computer implemented data processing system and method administers a deferred variable annuity contract during the accumulation phase for a relevant life. The annuity contract has a payment base value, a contract value, and a step-up provision. Administration of the product determines whether a step-up of the payment base value is applicable. If applicable, the product determines a step-up, wherein the step-up is guaranteed at a predetermined percentage. The investments of the deferred variable annuity contract are not limited to a specific asset allocation in order to qualify for the step-up provision.

Claims

1. A data processing system for administering a deferred variable annuity product during the accumulation phase for a relevant life, the annuity product having a payment base, a contract value, and a guarantee of lifetime benefit payments, said system comprising:

a storage device having data relating to the payment base, the withdrawal percent relationship, the withdrawal percent and the deferred variable annuity product for a relevant life; and

a processor operatively coupled to the storage device to read said data relating to a payment base for said annuity product, a withdrawal percent relationship, a withdrawal percent and a deferred variable annuity product, the storage device storing modules utilized by the processor for calculating a payment base for said annuity product that is a function of the previous premium payments and withdrawals by the relevant life, and for predetermining a withdrawal percent relationship that provides a particular withdrawal percent for each year of the relevant life'"'"'s life according to each birthday of the relevant life.

2. The data processing system of claim 1, wherein the storage device further storing a module utilized by the processor for periodically accepting premium payments from the relevant life which increase the payment base and the contract value, if requested by the relevant life during the accumulation phase.

3. The data processing system of claim 1, wherein the storage device further storing a module utilized by the processor for periodically paying a guaranteed lifetime benefit payment withdrawal to the relevant life from the contract value which decreases the contract value, if requested by the relevant life during the accumulation phase.

4. The data processing system of claim 1, wherein the storage device further storing a module utilized by the processor for periodically paying a withdrawal payment during the accumulation phase, that is in excess of the lifetime benefit payment, to the relevant life from the contract value which decreases each of:

the contract value and the payment base.

5. The data processing system of claim 1, wherein the lifetime benefit, payment withdrawal is calculated using the following formula:

((withdrawal percent)×

(withdrawal base)); and

wherein the withdrawal percent is calculated using said withdrawal percent relationship, and the relevant life may request the withdrawal percent that corresponds to his age, as provided by the withdrawal percent relationship at a frequency of once a year or higher.

6. A data processing method for administering a deferred variable annuity product during the accumulation phase for a relevant life, the annuity product having a payment base value, a contract value, and a guarantee of lifetime benefit payments, comprising the steps of:

a. calculating a payment base;

b. predetermining a withdrawal percent relationship that provides a particular withdrawal percent for each year of the relevant life'"'"'s life according to each birthday of the relevant life;

c. paying a lifetime benefit payment;

d. wherein the lifetime benefit payment withdrawal is calculated using the following formula;

((withdrawal percent)×

(withdrawal base)), wherein the withdrawal percent is calculated using said withdrawal percent relationship and wherein the relevant life does not have to wait for the contract anniversary date in order to request the withdrawal percent that corresponds to his age as provided by the withdrawal percent relationship.

7. A data processing system for administering a deferred variable annuity product during the accumulation phase for a relevant life, the annuity product having a payment base, a contract value, and a guarantee of lifetime benefit payments, said system comprising:

a storage device having data relating to the payment base, the withdrawal percent relationship, the withdrawal percent and the deferred variable annuity product for a relevant life;

a processor operatively coupled to the storage device to read said data relating to the payment base for said annuity product, the withdrawal percent relationship, the withdrawal percent and the deferred variable annuity product, the storage device storing a module utilized by the processor, comprising;

a module for paying a lifetime benefit payment; and

wherein a lifetime benefit payment withdrawal is calculated using the following formula;

((withdrawal percent)×

(withdrawal base)), wherein the withdrawal percent is predetermined according to the age of the relevant life, and the relevant life does not have to wait for the contract anniversary date in order to request the withdrawal percent that corresponds to his age, as provided by a predetermined withdrawal percent relationship.

8. A data processing system for administering a deferred variable annuity product during the accumulation phase for a relevant life, the annuity product having a payment base, a contract value, and a guarantee of lifetime benefit payments, said system comprising:

a storage device having data relating to the payment base, the withdrawal percent relationship, the withdrawal percent and the deferred variable annuity product for a relevant life;

a processor operatively coupled to the storage device to read said data relating to the payment base for said annuity product, the withdrawal percent relationship, the withdrawal percent and the deferred variable annuity product, the storage device storing a module utilized by the processor, comprising;

an administration module operative to calculate a lifetime benefit payment, wherein the lifetime benefit payment withdrawal is calculated using the following formula;

((withdrawal percent)×

(withdrawal base)); and

wherein the withdrawal percent is predetermined according to the age of the relevant life, and the relevant life may request the withdrawal percent that corresponds to his age, as provided by the withdrawal percent relationship at a frequency of once a year or higher.

9. A computer implemented data processing method for administering a deferred variable annuity product during the accumulation phase for a relevant life, the annuity product having a payment base, a contract value, and a guarantee of lifetime benefit payments, said method comprising the steps of:

a. calculating a payment base value for the annuity product that is a function of the previous premium payments and withdrawals by the relevant life;

b. predetermining a withdrawal relationship that provides a particular withdrawal percent for each year of the relevant life'"'"'s life according to each birthday of the relevant life; and

c. during the accumulation phase;

i. if requested by the relevant life, periodically accepting premium payments from the relevant life which increase the payment base and the contract value;

ii. if requested by the relevant life, periodically paying a guaranteed lifetime benefit payment withdrawal to the relevant life from the contract value which decreases the contract value;

iii. if requested by the relevant life, periodically paying a withdrawal payment, that is in excess of the lifetime benefit payment, to the relevant life from the contract value which decreases each of;

the contract value and the payment base; and

iv. wherein the lifetime benefit payment withdrawal is calculated using the following formula;

((withdrawal percent)×

(withdrawal base)),

wherein the withdrawal percent is calculated using said withdrawal percent relationship, and the relevant life does not have to wait for the contract anniversary date in order to request the withdrawal percent that corresponds to the relevant life'"'"'s age, as provided by the withdrawal percent relationship.

10. The computer implemented data processing method of by claim 9, wherein said withdrawal base equals the payment base.

11. The computer implemented data processing method of claim 9, wherein said withdrawal base equals the contract value.

12. The computer implemented data processing method of claim 9, wherein said withdrawal base equals the greater of the payment base or the contract value.

13. The computer implemented data processing method of claim 9, wherein the lifetime benefit payment is paid periodically.

14. The computer implemented data processing method of claim 9, wherein the lifetime benefit payment is paid yearly.

15. The computer implemented data processing method of claim 9, wherein the lifetime benefit payment withdrawal that is requested by the relevant life is less than the maximum available amount for that period.

16. The computer implemented data processing method of claim 9, wherein the withdrawal percent is a function of the relevant life'"'"'s age.

17. The computer implemented data processing method of claim 9, wherein the withdrawal percent is fixed for the remainder of the contract, once the first lifetime benefit payment withdrawal is taken.

18. The computer implemented data processing method of claim 9, wherein the withdrawal percent increases over the term of the annuity.

19. The computer implemented data processing method of claim 9, wherein the withdrawal percent decreases over the term of the annuity.

20. The computer implemented data processing method of claim 9, wherein the withdrawal percent fluctuates over the term of the annuity.

21. The computer implemented data processing method of claim 9, further comprising the step of collecting a rider fee.

22. The computer implemented data processing method of claim 9, further comprising the step of collecting an account maintenance fee.

23. The computer implemented data processing method of claim 9, further comprising the step of paying a death benefit to a beneficiary upon the death of the relevant life, wherein the death benefit is the greater of:

(a) a predetermined guaranteed death benefit amount;

or (b) the present contract value.

24. The computer implemented data processing method of claim 23, wherein the guaranteed death benefit is paid to the beneficiary only if the relevant life dies during the accumulation phase.

25. The computer implemented data processing method of claim 9, wherein the value of the annuity payments equals the value of the last guaranteed lifetime benefit payment.