System and method for annuity valuation
First Claim
1. A system, comprising:
- at least one processor for execution of a specified valuation method;
at least one database associated with the processor; and
a financial account, the account having term and having a plurality of time periods associated therewith, with the plurality of time periods cumulatively less than or equal to the specified term, and the account having a premium deposited therein;
wherein the specified valuation method executed by the at least one processor uses the relationship provided that tA≦
P, and where P is the premium, t is the number corresponding to the number of one of the plurality of time periods, A is an amount less than P, and it is the interest rate for the time period designated as t.
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Accused Products
Abstract
A system and method for annuity valuation. The system of the present invention comprises a processor for execution of the method of the present invention and a data storage device for storage of data related to annuity accounts. The system also comprises an input device for input of variables and parameters related to the method of the present invention. The system may also comprise an output device for transmission of or display of data related to annuity accounts. The method of the present invention comprises the application of different interest (earnings) rates for a plurality of time periods during the term of the account. The present invention operates and in and appropriately reflects changes in increasing, declining, and steady interest rate environments. Annuities offered utilizing the present invention afford the company the opportunity to provide credits for reinvestment. Also, variables of the present invention allow companies to offer a myriad of different annuity products to its customers.
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Citations
24 Claims
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1. A system, comprising:
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at least one processor for execution of a specified valuation method; at least one database associated with the processor; and a financial account, the account having term and having a plurality of time periods associated therewith, with the plurality of time periods cumulatively less than or equal to the specified term, and the account having a premium deposited therein; wherein the specified valuation method executed by the at least one processor uses the relationship provided that tA≦
P, and where P is the premium, t is the number corresponding to the number of one of the plurality of time periods, A is an amount less than P, and it is the interest rate for the time period designated as t.- View Dependent Claims (2, 3, 4, 5, 6)
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7. A method for financial account valuation, the method comprising the steps of:
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establishing an account, the account having a specified term and having a plurality of time periods associated therewith, with the plurality of time periods cumulatively less than or equal to the specified term; establishing an interest rate for each of the plurality of time periods; depositing a least one premium into the account; calculating earnings at a time corresponding to one of the plurality of time periods, Et, according to the relationship provided that tA≦
P, and where P is the premium, t is the number corresponding to the number of one of the plurality of time periods, A is amount less than P, and it is the interest rate for the time period designated as t.- View Dependent Claims (8, 9, 10, 11, 12)
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13. A method for financial account valuation, the method comprising the steps of:
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establishing an account, the account having term and having a first and second time period, wherein the sum of the first and second time periods is less than or equal to the term of the account; depositing a premium P into the account and establishing an amount A less than the premium; establishing a first interest rate, i1, for the first time period; determining earnings for the first time period as E1=Pi1; establishing a second interest rate, i2, for the second time period; and determining earnings for the second time period as E2=Ai2+(P−
A)i1. - View Dependent Claims (14, 15, 16, 24)
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17. A method for financial account valuation, the method comprising the steps of:
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(a) establishing an account, the account having a specified term and having a plurality of time periods associated therewith, with the plurality of time periods cumulatively less than or equal to the specified term; (b) depositing a premium P in the account; (c) specifying an amount A less than the premium; (d) establishing an interest rate for the first of the plurality of time periods; (e) determining earnings for the account at the conclusion of the first of the plurality of time periods as E1=Pi1, where i1 is the interest rate for the first of the plurality of time periods, and P is the premium; (f) establishing an interest rate for the next of the plurality of time periods; (g) determining earnings for the next of the plurality of time periods, Et, using the relationship where t designated the number of the next time period, and in is the interest rate for the time period n. - View Dependent Claims (18, 19, 20, 21)
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22. A method for financial account valuation, the method comprising the steps of:
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(a) establishing an account the account having a specified term and having a plurality of time periods associated therewith, with the plurality of time periods cumulatively less than or equal to the specified term; (b) depositing a premium P in the account; (c) specifying an amount A less than the premium; (d) establishing a plurality of funds for the account, the total number of funds, t, equal to P/A; (e) placing premium P in the first of the plurality of funds; (f) establishing a first interest rate, i1, for the first of the plurality of time periods; (g) determining earnings for the first of the plurality of time periods by the relationship E1=F1i1, where F1 is the first of the plurality of funds; (h) establishing an interest rate for the next of the plurality of time periods; (i) moving an amount A from F1 to the fund for that particular next time period, Ft; and (j) determining earnings for the next of the plurality of time periods by the relationship where Fn is the fund for time period n and in is the interest rate for time period n. - View Dependent Claims (23)
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Specification