METHOD AND SYSTEM FOR AN ENHANCED STEP-UP PROVISION IN A DEFERRED VARIABLE ANNUITY WITH A RISING GUARANTEED STEP-UP

• US 20110066453A1
• Filed: 10/06/2010
• Published: 03/17/2011
• 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: Wiland, David P., Tatro, Charles D.
• Granted Patent: US 8,103,571 B2
• Time in Patent Office: Days
• US Class Current: 705/4
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• 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 processing data associated with a deferred variable annuity contract during the accumulation phase, including data indicative of a payment base value, a withdrawal percent value, and a contract value, and data indicative of a formula, for determining an amount of benefit payments available on a periodic basis in accordance with a guarantee, based on multiplying the payment base value by the withdrawal percent value, said system comprising:

a storage device storing data relating to the annuity contract, the stored data comprising data indicative of a present payment base value, a present contract value, a percentage maximum increase in the payment base value and the withdrawal percent value;

a processor in communication with the storage device, the processor configured to;

compare the present contract value to a present payment base value;

responsive to determining that the present contract value is greater than the present payment base value, determine a stepped-up payment base value, the stepped-up payment base value being a lesser of the present contract value and the present payment base value increased by the percentage maximum increase;

store data indicative of the stepped-up payment base value in the storage device; and

determine a benefit payment amount available for withdrawal without reducing the payment base value by multiplying the stepped-up payment base value by the withdrawal percent value.

2. The data processing system of claim 1, wherein the processor is further configured to provide an output signal having data indicative of the stepped-up payment base value.

3. The data processing system of claim 1, further comprising, in communication with the processor, a payment module for making a benefit payment to a relevant life.

4. The data processing system of claim 3, wherein the processor is further configured to, responsive to receipt of data indicative of a request for withdrawal from the relevant life, provide an output signal to the payment module having data indicative of an amount of a benefit payment.

5. The data processing system of claim 1, wherein the processor is further configured to provide an output signal having data indicative of instructions to communicate the stepped-up payment base value to a relevant life.

6. The data processing system of claim 1, wherein the processor is further configured to store data indicative of the determined benefit payment amount available associated with data indicative of a one year period.

7. The data processing system of claim 1, wherein the storage device further stores data indicative of availability of the benefit payment to a relevant life for the lifetime of the relevant life.

8. A computer-implemented method for processing data associated with a deferred variable annuity contract during the accumulation phase, the data including data indicative of a contract value, a payment base value, and a withdrawal percent value, and data indicative of a formula, based on multiplying the payment base value by the withdrawal percent value, for determining an amount of a guarantee of periodically available benefit payments, comprising:

accessing by a processor from a data storage device data relating to the annuity contract, the accessed data comprising a present payment base value, a present contract value, a percentage maximum increase in the payment base value and the withdrawal percent value;

comparing by the processor the present contract value to the present payment base value;

responsive to determining that the present contract value is greater than the present payment base value, determining by the processor a stepped-up payment base value, the stepped-up payment base value being a lesser of the present contract value and the present payment base value increased by the percentage maximum increase; and

storing by the processor data indicative of the stepped-up payment base value in the data storage device.

9. The computer-implemented method of claim 8, further comprising determining by the processor a benefit payment amount available for withdrawal during a period without reducing the payment base value by multiplying the stepped-up payment base value by the withdrawal percent value.

10. The computer-implemented method of claim 8, further comprising providing by the processor an output signal including data indicative of the stepped-up payment base value, and

communicating the stepped-up payment base value to a relevant life.

11. The computer-implemented method of claim 8, further comprising making a payment to a relevant life responsive to receipt of a request from the relevant life for a payment.

12. The computer-implemented method of claim 11, further comprising comparing an amount of the payment to a product of the stepped-up payment base value and the withdrawal percent value, and, responsive to determining that the amount of the payment is greater than the product of the stepped-up payment base value and the withdrawal percent value, determining a reduced payment base value.

13. A tangible computer-readable medium having processor-executable instructions stored thereon, which instructions, when executed by a processor, cause the processor to:

access from a data storage device data associated with an annuity contract, the accessed data comprising a present payment base value, a present contract value, a percentage maximum increase in the payment base value and a withdrawal percent value;

compare the present contract value to the present payment base value;

responsive to determining that the present contract value is greater than the present payment base, determine a stepped-up payment base value, the stepped-up payment base value being a lesser of the present contract value and the present payment base value increased by a predetermined maximum step up percentage;

determine a benefit payment amount available for withdrawal without reducing the payment base value by multiplying the stepped-up payment base value by the withdrawal percent value; and

store data indicative of the stepped-up payment base value and the determined benefit payment amount in the data storage device.

14. The tangible computer-readable medium of claim 13, wherein the instructions further cause the processor to, responsive to determining that the present contract value is not greater than the present payment base value, provide an output signal having data indicative that the payment base value is not stepped up.

15. The tangible computer-readable medium of claim 13, wherein the instructions further cause the processor to, responsive to receipt of data indicative of a request for a withdrawal from a relevant life, provide an output signal to a payment module having data indicative of a direction to effect payment to the relevant life.

16. The tangible computer-readable medium of claim 15, wherein the instructions further cause the processor to, responsive to receipt of the data indicative of the request for the withdrawal from the relevant life, determine a total of withdrawals during a current period, compare the total to the determined benefit payment amount and, responsive to determining that the total is greater than the determined benefit payment amount, determine a reduced payment base value.

17. The tangible computer-readable medium of claim 15, wherein the instructions further cause the processor to, responsive to receipt of the data indicative of the request for the withdrawal from the relevant life, determine a total of withdrawals during a current period, compare the total to the determined benefit payment amount and, responsive to determining that the total is not greater than the determined benefit payment amount, provide an output signal having data indicative of instructions to communicate to the relevant life that the withdrawal is made without reduction of the payment base value.

18. The tangible computer-readable medium of claim 13, wherein the instructions further cause the processor to provide an output signal having data indicative of instructions to communicate the stepped-up payment base value and the determined benefit payment amount to a relevant life.

19. The tangible computer-readable medium of claim 13, wherein the instructions further cause the processor to provide an output signal having data indicative that the determined benefit payment amount is an amount available for withdrawal during a year period during an accumulation phase of the annuity contract without reduction of the payment base value.

20. The tangible computer-readable medium of claim 13, wherein the instructions further cause the processor to provide an output signal having data indicative of a guarantee of annual benefit payments up to the determined benefit payment amount for a lifetime of a relevant life.