Method and system for a step-up provision in a deferred variable annuity with a rising guaranteed step-up
First Claim
1. A data processing system for administering a deferred variable annuity contract during the accumulation phase, the annuity contract having a payment base value, a contract value, and a step-up provision, said system comprising:
- a storage device;
a processor coupled to the storage device, the storage device storing modules utilized by the processor, for determining if a step-up in the present payment base value is applicable; and
if the step-up is applicable, for determining a step-up, wherein the step-up is not more than a predetermined percentage of the present payment base value, and wherein the step-up is greater than zero, increasing the present payment base value by the step-up; and
further for multiplying, the increased payment base value by a withdrawal percent to determine a benefit payment amount available for withdrawal without reducing the present payment base value;
wherein the step up is applicable if the present contract value is greater than the previously highest attained contract value as determined at periodic time intervals.
1 Assignment
0 Petitions
Accused Products
Abstract
A computer implemented data processing system and method for administering 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.
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Citations
22 Claims
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1. A data processing system for administering a deferred variable annuity contract during the accumulation phase, the annuity contract having a payment base value, a contract value, and a step-up provision, said system comprising:
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a storage device; a processor coupled to the storage device, the storage device storing modules utilized by the processor, for determining if a step-up in the present payment base value is applicable; and if the step-up is applicable, for determining a step-up, wherein the step-up is not more than a predetermined percentage of the present payment base value, and wherein the step-up is greater than zero, increasing the present payment base value by the step-up; and further for multiplying, the increased payment base value by a withdrawal percent to determine a benefit payment amount available for withdrawal without reducing the present payment base value; wherein the step up is applicable if the present contract value is greater than the previously highest attained contract value as determined at periodic time intervals. - View Dependent Claims (2, 3, 4, 20, 21)
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5. A system for administering a deferred variable annuity contract during the accumulation phase, the annuity contract having a payment base value, a contract value, and a step-up provision, comprising:
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a storage device; a processor coupled to the storage device, the storage device storing modules utilized by the processor, the modules comprising; i. a first module for receiving information from a relevant life in order to establish a deferred variable annuity contract; ii. a second module for receiving benefit payment withdrawal requests from the relevant life; iii. a third module for determining if a step-up in the present payment base value is applicable, and if the step-up is applicable; 1. for determining a step-up, wherein the step-up is not more than a predetermined percentage of the present payment base value; and 2. wherein the step-up is greater than zero, determining an instruction for increasing the present payment base value according to the following formula;
(present payment base value)×
(1+step-up)iv. a fourth module for determining a benefit payment amount available for withdrawal without reduction in the payment base, the benefit payment amount being the payment base value multiplied by a withdrawal percentage; wherein the step up is applicable if the present contract value is greater than the previously highest attained contract value as determined at periodic time intervals. - View Dependent Claims (6)
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7. A computer implemented data processing method for administering a deferred variable annuity contract during the accumulation phase, the annuity contract having a payment base value, a contract value, and a step-up provision, said method comprising the steps of:
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a. accessing by a processor from a memory device a present payment base value for the annuity contract; b. accessing by the processor from the memory device determining a present contract value for said annuity contract; c. determining by the processor if a step-up is applicable; d. if the step-up, is applicable, i. determining by the processor a step-up amount, wherein the step-up amount is not more than a predetermined percentage of the present payment base value; ii. providing an output signal by the processor indicative of an increase in increasing the present payment base value by said amount; iii. multiplying by the processor the increased payment base value by a withdrawal percent to determine a benefit payment amount available for withdrawal without reducing the present payment base value; wherein the step up is applicable if the present contract value is greater than the previously highest attained contract value as determined at periodic time intervals; and wherein said step-up is greater than zero. - View Dependent Claims (8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 22)
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Specification