SYSTEM AND METHOD FOR ADMINISTERING ANNUITIES

• US 20090292564A1
• Filed: 05/20/2008
• Published: 11/26/2009
• Est. Priority Date: 05/20/2008
• Status: Active Grant

• Current Assignee: Hartford Fire Insurance Company (The Hartford Financial Services Group, Inc.)
• Original Assignee: Hartford Fire Insurance Company (The Hartford Financial Services Group, Inc.)
• Inventors: Weiss, Joseph M., Golembiewski, Keith E., Michalowski, Philip W.
• Granted Patent: US 8,224,673 B2
• Time in Patent Office: Days
• US Class Current: 705/4
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A computer-implemented method for administering an annuity product includes storing by a processor in memory an amount of an initial funding payment, an interest rate formula and a term for an accumulation annuity, and storing terms including a deferral term for a guaranteed income annuity. If the processor determines that the current time is during the term, the processor calculates an amount of interest earned on the fixed rate annuity and storing in memory a credit of the calculated interest amount to a guaranteed income annuity. After the accumulation period, the processor provides an output signal indicative of instructions to provide a notice of expiration. After the deferral period, the processor calculates an income annuity payment amount from the guaranteed income annuity; and provides an output signal indicative of instructions for a payment to be made to an annuitant based on the income annuity payment amount.

Claims

1. A computer system for administering an annuity that includes an accumulation and a guaranteed income annuity, comprising:

a processor;

a memory in communication with the processor;

the processor adapted to;

store in the memory an amount of an initial funding payment, an interest rate formula and a term for the accumulation annuity;

store in the memory at least a deferral period of the guaranteed income annuity;

if the current time is during the term, calculate an amount of interest earned on the accumulation annuity;

store in the memory a credit of the calculated interest amount to the guaranteed income annuity;

determine whether the time is after the accumulation period, and if the time is after the accumulation period, provide an output signal indicative of an instruction to provide a notice of expiration;

determine whether the current time is after the expiration of the deferral period, and, if the current time is after the expiration of the deferral period, calculate an income annuity payment amount from the guaranteed income annuity; and

provide an output signal indicative of instructions for a payment to be made to the annuitant based on the income annuity payment amount, wherein the asset value of the accumulation annuity account is independent of the value of a security or index.

2. The system of claim 1, wherein the processor is further adapted to, at the time of the storing of the initial funding payment, store in the memory an initial funding payment to the guaranteed income annuity.

3. The system of claim 1, wherein the processor is further adapted to, at the time of expiration, in response to a digital signal indicative of received customer instructions, store in the memory an instruction to renew the accumulation annuity, and to credit interest on the accumulation annuity at least in part to the accumulation annuity.

4. The system of claim 1, wherein the processor is further adapted to, at the time of expiration, in response to a digital signal indicative of received customer instructions, store in the memory an instruction to renew the accumulation annuity and an instruction to provide payment to the customer of interest on the renewed accumulation annuity.

5. The system of claim 1, wherein the processor is further adapted to, prior to the time of storing an initial funding amount, receive a digital signal indicative of an available initial funding amount, at least a desired income annuity amount and a desired asset value amount for the accumulation annuity;

calculate the accumulation term and deferral term consistent with the received initial funding amount and the desired income annuity amount and asset value amount; and

provide an output indicating at least the calculated accumulation term and the calculated deferral term.

6. The system of claim 1, wherein the processor is further adapted to, prior to the time of storing an initial funding amount, receive a digital signal indicative of at least a desired income annuity amount, a desired asset value amount for the accumulation annuity, and a desired deferral period;

calculate the initial funding amount, the accumulation term consistent with the received desired income annuity amount, desired asset value amount and desired deferral period; and

provide an output indicating the calculated initial funding amount and accumulation term.

7. The system of claim 1, further comprising:

a payment determination system having a processor for;

receiving the output signal, determining of a payor account and a payment method;

storing of the determined payor account information and the determined payment method in a memory of the payment determination system;

outputting of a digital signal indicative of the stored payor account information, the stored payment method, amount information and payee information; and

a payment fulfillment system for receiving the digital signal from the payment determination system and for fulfillment of payment in accordance with the information conveyed by the digital signal from the processor of the payment determination system.

8. The system of claim 7, wherein the payment fulfillment system is a check printing and mailing system for printing and mailing a check drawn on the payor account in an amount and to a payee as determined by the information conveyed by the digital signal from the processor of the payment determination system.

9. The system of claim 7, wherein the payment fulfillment system is a system for generating electronic funds transfer requests for providing of an instruction to a bank determined by the payor account information to provide an electronic funds transfer from the payor account to a payee account in an amount determined by the information conveyed by the digital signal from the processor of the payment determination system.

10. The system of claim 1, further comprising an input module, the processor adapted to receive one or more of the initial funding payment amount, the interest rate formula and the term for the accumulation annuity from the input module.

11. The system of claim 10, wherein the input module comprises a workstation having a keyboard and a pointing device.

12. A computer-implemented method for administering an annuity product, comprising the steps of:

storing by a processor in a memory in communication with the processor an amount of an initial funding payment, an interest rate formula and a term for an accumulation annuity;

storing by the processor in the memory at least a deferral period of a guaranteed income annuity;

if the processor determines that the current time is during the term, calculating by the processor an amount of interest earned on the accumulation annuity, and storing by the processor the amount in the memory;

storing by the processor in the memory a credit of the calculated interest amount to a guaranteed income annuity;

if the processor determines that the current time is after the accumulation period, providing by the processor an output signal indicative of an instruction to provide a notice of expiration;

if the processor determines that the current time is after the expiration of the deferral period, calculating by the processor an income annuity payment amount from the guaranteed income annuity; and

providing by the processor an output signal indicative of instructions for a payment to be made to the annuitant based on the income annuity payment amount.

13. The method of claim 12, further comprising, at the time of the storing of the initial funding payment, storing by the processor in the memory an initial funding payment to the guaranteed income annuity.

14. The method of claim 12, further comprising, at the time of expiration, in response to a digital signal indicative of received customer instructions, storing by the processor in the memory an instruction to renew the accumulation annuity, and to credit interest on the accumulation annuity at least in part to the accumulation annuity.

15. The method of claim 12, further comprising, at the time of expiration, in response to a digital signal indicative of received customer instructions, storing by the processor in the memory an instruction to renew the accumulation annuity and an instruction to provide payment to the customer of interest on the renewed accumulation annuity.

16. The method of claim 12, further comprising, prior to the time of storing an initial funding amount, receiving a digital signal indicative of an available initial funding amount, at least a desired income annuity amount and a desired asset value amount for the accumulation annuity;

calculating by the processor the accumulation term and deferral term consistent with the received initial funding amount and the desired income annuity amount and asset value amount; and

providing by the processor an output indicating at least the calculated accumulation term and the calculated deferral term.

17. The method of claim 12, further comprising, prior to the time of storing an initial funding amount, receiving a digital signal indicative of at least a desired income annuity amount, a desired asset value amount for the accumulation annuity, and a desired deferral period;

calculating by the processor the initial funding amount, the accumulation term consistent with the received desired income annuity amount, desired asset value amount and desired deferral period; and

providing by the processor an output indicating the calculated initial funding amount and accumulation term.

18. The method of claim 12, further comprising the step of receiving the output signal at a processor of a payment determination system;

determining by the processor of the payment determination system of a payor account and a payment method, and storing of the determined payor account information and the determined payment method in memory by the processor of the payment determination system;

outputting by the processor of the payment determination system of a digital signal indicative of the stored payor account information, the stored payment method, amount information and payee information;

receipt by a processor of a payment fulfillment system of the digital signal from the payment determination system; and

fulfillment of payment in accordance with the information conveyed by the digital signal from the processor of the payment determination system.

19. The method of claim 18, wherein the payment fulfillment system is a check printing and mailing system, and wherein the step of fulfillment comprises printing and mailing a check drawn on the payor account in an amount and to a payee as determined by the information conveyed by the digital signal from the processor of the payment determination system.

20. The method of claim 18, wherein the payment fulfillment system is a system for generating electronic funds transfer requests, and wherein the step of fulfillment comprises providing by the payment fulfillment system of an instruction to a bank determined by the payor account information to provide an electronic funds transfer from the payor account to a payee account in an amount determined by the information conveyed by the digital signal from the processor of the payment determination system.

21. A computer-readable medium having a plurality of instructions thereon which, when executed by a processor, cause the processor to:

store in memory an amount of an initial funding payment, an interest rate formula and a term for an accumulation annuity;

store in memory at least a deferral period of a guaranteed income annuity;

determine if the current time is during the term, and, if the current time is during the term, calculate an amount of interest earned on the accumulation annuity;

store in memory a credit of the calculated interest amount to a guaranteed income annuity;

determine if the current time is after the accumulation period and, if the current time is after the accumulation period, provide an output signal indicative of an instruction to provide a notice of expiration;

determine if the current time is after the expiration of the deferral period, and, if the current time is after the expiration of the deferral period, calculate an income annuity payment amount from the guaranteed income annuity; and

provide an output signal indicative of instructions for a payment to be made to the annuitant based on the income annuity payment amount.

22. The computer-readable medium of claim 21, wherein the instructions further cause the processor to store in the memory an initial funding payment to the guaranteed income annuity.

23. The computer-readable medium of claim 21, wherein the instructions further cause the processor to, at the time of expiration, in response to a digital signal indicative of received customer instructions, store in the memory an instruction to renew the accumulation annuity, and credit interest on the accumulation annuity at least in part to the accumulation annuity.

24. A computer system for administering an annuity, comprising:

a processor;

a memory in communication with the processor;

the processor adapted to;

store in a memory in communication with the processor an amount of an initial funding payment, an interest rate formula and a term for an accumulation annuity;

store in the memory a deferral period and an initial funding payment of a guaranteed income annuity;

determine if the current time is during the accumulation annuity term and, if the current time is during the term, calculate an amount of interest earned on the accumulation annuity;

store in the memory a credit of the calculated interest amount at least to the accumulation annuity;

determine if the current time is during the accumulation annuity term, and if the time is after the accumulation period, provide an output signal indicative of an instruction to provide a notice of expiration;

determine if the current time is after the expiration of the deferral period, and, if the time is after the expiration of the deferral period, calculate an income annuity payment amount from the guaranteed income annuity and store the calculated income annuity payment amount in the memory; and

provide an output signal indicative of instructions for a payment to be made to the annuitant based on the calculated income annuity payment amount.

25. The system of claim 24, wherein the processor is further adapted to, at the time of expiration of the accumulation annuity term, in response to a digital signal indicative of received customer instructions, store in the memory an instruction to renew the accumulation annuity, and to credit interest on the accumulation annuity at least in part to the accumulation annuity.

26. The system of claim 24, wherein the processor is further adapted to, at the time of expiration of the accumulation annuity term, in response to a digital signal indicative of received customer instructions, store in the memory an instruction to renew the accumulation annuity and an instruction to provide payment to the customer of interest on the renewed accumulation annuity.

27. A computer-implemented method for administering an annuity, comprising the steps of:

storing by a processor in a memory in communication with the processor an amount of an initial funding payment, an interest rate formula and a term for an accumulation annuity;

storing by the processor in the memory a deferral period and an initial funding payment of a guaranteed income annuity;

determining by the processor if the current time is during the accumulation annuity term and, if the current time is during the term, calculating by the processor an amount of interest earned on the accumulation annuity;

storing by the processor in the memory a credit of the calculated interest amount at least to the accumulation annuity;

determining by the processor if the current time is during the accumulation annuity term, and if the time is after the accumulation annuity term, providing by the processor an output signal indicative of an instruction to provide a notice of expiration;

determining by the processor if the current time is after the expiration of the deferral period, and, if the time is after the expiration of the deferral period, calculating by the processor of an income annuity payment amount from the guaranteed income annuity and storing by the processor of the calculated income annuity payment amount in the memory; and

providing by the processor an output signal indicative of instructions for a payment to be made to the annuitant based on the calculated income annuity payment amount.

28. The method of claim 27, further comprising storing by the processor in the memory a credit of a portion of the calculated interest amount to the guaranteed income annuity.

29. The method of claim 27, further comprising the step of, at the time of expiration of the accumulation annuity term, in response to a digital signal indicative of received customer instructions, storing by the processor in the memory an instruction to renew the accumulation annuity, and to credit interest on the accumulation annuity at least in part to the accumulation annuity.

30. A computer-readable medium having a plurality of instructions thereon which, when executed by a processor, cause the processor to:

store in a memory in communication with the processor an amount of an initial funding payment, an interest rate formula and a term for an accumulation annuity;

store in the memory a deferral period and an initial funding payment of a guaranteed income annuity;

determine if the current time is during the accumulation annuity term and, if the current time is during the accumulation annuity term, calculate an amount of interest earned on the accumulation annuity;

store in the memory a credit of the calculated interest amount at least to the accumulation annuity;

determine if the current time is during the accumulation annuity term, and if the time is after the accumulation annuity term, provide an output signal indicative of an instruction to provide a notice of expiration;

determine if the current time is after the expiration of the deferral period, and, if the time is after the expiration of the deferral period, calculate an income annuity payment amount from the guaranteed income annuity and store the calculated income annuity payment amount in the memory; and

provide an output signal indicative of instructions for a payment to be made to the annuitant based on the calculated income annuity payment amount.

31. The computer-readable medium of claim 30, wherein the instructions further cause the processor to, at the time of expiration of the accumulation annuity term, in response to a digital signal indicative of received customer instructions, store in the memory an instruction to renew the accumulation annuity, and to credit interest on the accumulation annuity at least in part to the accumulation annuity.

32. The computer-readable medium of claim 30, wherein the instructions further cause the processor to, at the time of expiration of the accumulation annuity term, in response to a digital signal indicative of received customer instructions, store in the memory an instruction to renew the accumulation annuity and an instruction to provide payment to the customer of interest on the renewed accumulation annuity.