SYSTEM AND METHOD FOR BENEFIT CONVERSION

• US 20090276369A1
• Filed: 04/30/2009
• Published: 11/05/2009
• Est. Priority Date: 05/02/2008
• Status: Abandoned Application

• Current Assignee: David Kam, Steven Mabry
• Original Assignee: David Kam, Steven Mabry
• Inventors: Mabry, Steven, Kam, David
• Application Number:
  US12/433,416
• Publication Number:
  US 20090276369A1
• Time in Patent Office: Days
• US Class Current: 705/36.R
• 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 40/06 Asset management; Financial planning or analysis

Abstract

Described are systems and methods converting a first guaranteed benefit to a second guaranteed benefit. The system may include a first computing arrangement storing first annuity data indicative of a first guaranteed benefit associated with an annuity, and a second computing arrangement sending a request to the first computing arrangement to convert the first guaranteed benefit to a second guaranteed benefit. Upon receipt of the message, the first computing arrangement may store second annuity data indicative of the second guaranteed benefit associated with the annuity.

Claims

1. A computerized system, comprising:

a first computing arrangement storing first annuity data indicative of a first guaranteed benefit associated with an annuity; and

a second computing arrangement sending a request to the first computing arrangement to convert the first guaranteed benefit to a second guaranteed benefit,

wherein, upon receipt of the message, the first computing arrangement stores second annuity data indicative of the second guaranteed benefit associated with the annuity.

2. The system according to claim 1, wherein the first guaranteed benefit is a guaranteed minimum income benefit (“

GMIB”

).

3. The system according to claim 2, wherein the second guaranteed benefit is a guaranteed withdrawal benefit for life (“

GWBL”

).

4. The system according to claim 1, wherein the first computing arrangement stores data indicative of a trigger event associated with the annuity.

5. The system according to claim 4, further comprising:

a timer set to a predetermined time period,

wherein the first computing arrangement activates the timer upon detection of the trigger event.

6. The system according to claim 4, wherein the trigger event includes at least one of a user reaching a predetermined age, a predetermined anniversary of issuance of the annuity, a failure to exercise the first guaranteed benefit, a deferral of a payment from the annuity, a value of an investment underlying the annuity reaching a predetermined threshold and a market index reaching a predetermined value.

7. The system according to claim 5, wherein the predetermined time period is thirty days.

8. The system according to claim 1, wherein the first computing arrangement includes at least one of a server and a database.

9. The system according to claim 1, wherein the second computing arrangement includes at least one of a personal computer and a handheld device.

10. A method, comprising:

generating an annuity contract having a first guaranteed benefit rider;

converting the first guaranteed benefit rider to a second guaranteed benefit rider on a predetermined date after an owner of the annuity contract reaches a predetermined age; and

computing payments to be made to the owner at predetermined intervals according to terms in the second guaranteed benefit rider.

11. The method according to claim 10, wherein the generating includes:

receiving a request including user data and annuity data; and

identifying terms for the annuity contract based on the user data and the annuity data.

12. The method according to claim 10, wherein the converting includes:

detecting a trigger event associated with the annuity contract.

13. The method according to claim 12, further comprising:

upon detecting the trigger event, associating the terms of the second guaranteed benefit rider with the annuity contract.

14. The method according to claim 13, further comprising:

setting a time period during which the first guaranteed benefit rider can be converted to the second guaranteed benefit rider

15. The method according to claim 14, further comprising:

receiving a request to at least one of (i) exercise the first guaranteed benefit rider, (ii) allow the first guaranteed benefit rider to lapse and deactivate the second guaranteed benefit rider, and (iii) elect to convert the first guaranteed benefit rider to the second guaranteed benefit rider.

16. The method according to claim 10, wherein the computing includes:

determining an initial contribution to the annuity contract;

computing a percentage of the initial contribution based on at least one of (i) a type of the annuity contract and (ii) a value of an investment made with the initial contribution; and

computing the payment as a function of the initial contribution and the percentage.

17. The method according to claim 10, further comprising:

transmitting the payments to the owner according to a predetermined schedule.

18. The method according to claim 10, further comprising:

allowing the owner to withdraw an amount up to a value of the payment.

19. The method according to claim 18, further comprising:

monitoring each withdrawal; and

computing a cumulative withdrawal amount for a predetermined time period.

20. The method according to claim 19, further comprising:

re-computing the payment when the cumulative withdrawal amount exceeds a predetermined threshold amount.