Method and system for an enhanced 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 for determining a present payment base value and a contract base value for said annuity contract;
wherein the step-up is applicable if the present contract value is greater than the previous period'"'"'s payment base value; and
if the step-up is applicable, determining a step-up, wherein the step-up is not more than a predetermined percentage of the present payment base value, and 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 valuewherein said step-up is greater than zero.
1 Assignment
0 Petitions
Accused Products
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.
65 Citations
26 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 for determining a present payment base value and a contract base value for said annuity contract; wherein the step-up is applicable if the present contract value is greater than the previous period'"'"'s payment base value; and if the step-up is applicable, determining a step-up, wherein the step-up is not more than a predetermined percentage of the present payment base value, and 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 said step-up is greater than zero. - View Dependent Claims (2, 3, 4, 5, 26)
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6. 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 a lifetime benefit payment withdrawal requests from the relevant life; and iii. a third module for determining if a step-up in the present payment base value is applicable, wherein the step-up is applicable if the present contract value is greater than the previous period'"'"'s payment base, 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 amount; 2. wherein said step-up is greater than zero, and determining an instruction for increasing the present payment base value according to the following formula;
((present payment base value)×
(1+step-up)); and3. further for employing the increased payment base value to determine a lifetime benefit payment amount available for withdrawal without reducing the present payment base value. - View Dependent Claims (7, 8, 9)
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10. 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. determining by a processor a present payment base value for the annuity contract and storing the present payment base value in a memory device; b. determining by the processor a present contract value for said annuity contract and storing the present contract value in a memory device; c. determining by the processor if a step-up is applicable, wherein the step-up is applicable if the present contract value is greater than the present payment base value; and 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. wherein said step-up amount is greater than zero and providing by the processor an output signal having data indicative of an increase in the present payment base value by said amount; and iii. determining by the processor, employing the increased payment base value, a benefit payment amount available for withdrawal without reducing the present payment base value. - View Dependent Claims (11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25)
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Specification