Method and system for processing data for a deferred annuity with available benefit payments related to an increasing withdrawal percent

• US 8,103,573 B2
• Filed: 07/14/2011
• Issued: 01/24/2012
• 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: Tatro, Charles D., Weiss, Joseph M.
• Primary Examiner(s): TINKLER, MURIEL S
• Application Number:
  US13/183,001
• Publication Number:
  US 20110270637A1
• Time in Patent Office: 194 Days
• Field of Search: 705/35, 705/36.R, 705/37
• US Class Current: 705/36.R
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• 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 processes data relating to a deferred annuity contract during the accumulation phase for a relevant life. The system is configured to determine an amount of an available benefit payment, available on a periodic basis for withdrawal without reduction of a payment base value, the available benefit payment amount being based on a withdrawal percent value and one of a payment base value and a contract value. The withdrawal percent value increases automatically after a first of the benefit payments.

Claims

1. A computer system for processing data relating to a deferred annuity contract during the accumulation phase, the annuity contract having a payment base value, a contract value, and benefit payments available, for a term and in accordance with a guarantee, in each of a plurality of time periods during the term, without reduction of the payment base value, comprising:

a data storage device storing data relating to the deferred annuity contract, including data indicative of;

the payment base value and the contract value; and

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

determine a value of a withdrawal percent applicable to a date during the accumulation phase based on data stored in the data storage device;

access from the data storage device data indicative of at least one of the payment base value and the contract value;

based on the determined value of the withdrawal percent and either the payment base value or the contract value, determine an amount of the benefit payment available during a time period during the accumulation phase without reduction of the payment base value; and

provide an output signal having data indicative of the determined amount of the benefit payment available during the time period without reduction of the payment base value;

wherein a value of the withdrawal percent is greater than zero and automatically increases during the accumulation phase and after a first of the benefit payments.

2. The computer system of claim 1, further comprising a payment module in communication with the processor for receiving data indicative of an amount of a benefit payment and for making the benefit payment to a relevant life.

3. The computer system of claim 1, wherein the processor is further configured to, responsive to receipt of data indicative of an amount of a benefit payment, determine an updated contract value by subtracting the amount of the benefit payment from the contract value, and provide an output signal having data indicative of the updated contract value.

4. The computer system of claim 1, wherein the data stored in the data storage device comprises data indicative of values of the withdrawal percent during the accumulation phase corresponding to ages of a relevant life, the withdrawal percent value increasing with the age of the relevant life.

5. The computer system of claim 4, wherein the data stored in the data storage device further comprises data indicative of a plurality of withdrawal percent values, each withdrawal percent value corresponding to a multi-year age range, the withdrawal percent value increasing as the age of the relevant life passes from one multi-year age range to a next multi-year age range.

6. The computer system of claim 5, wherein at least one of the multi-year age ranges is five years in duration, and the withdrawal percent increases by 0.5% as the age of the relevant life passes from at least one of the multi-year age ranges to a next one of the multi-year age ranges.

7. The computer system of claim 1, wherein the deferred annuity contract is a deferred variable annuity contract.

8. The computer system of claim 7, wherein the processor is further configured to, responsive to determining that a total amount of one or more withdrawals during one of the time periods exceeds the determined amount of the benefit payment available during the time period without reduction of the payment base value, determine a reduced payment base value, and provide an output signal having data indicative of the reduced payment base value.

9. A computer-implemented method for processing data relating to a deferred annuity contract during the accumulation phase, the deferred annuity contract having a payment base value, a contract value, and benefit payments available, for a term and in accordance with a guarantee, during each of a plurality of time periods during the term, without reduction of the payment base value, comprising:

accessing by a processor data relating to the deferred annuity contract and stored in a data storage device in communication with the processor, the stored data including the payment base value, the contract value, and data associated with determining a value of a withdrawal percent, the data indicative that the value of the withdrawal percent is greater than zero and automatically increases during the accumulation phase and after a first of the benefit payments;

determining by the processor, based on the accessed data, a value of the withdrawal percent applicable to a date during the accumulation phase;

based on the value of the withdrawal percent and either the payment base value or the contract value, determining by the processor an amount of the benefit payment available during a time period during the accumulation phase without reduction of the payment base value; and

providing by the processor an output signal having data indicative of the determined amount of the benefit payment available during the time period without reduction of the payment base value.

10. The computer-implemented method of claim 9, further comprising transmitting from the processor via a communications bus to a payment module data indicative of a benefit payment amount, and paying a relevant life a benefit payment in accordance with the received data.

11. The computer-implemented method of claim 10, further comprising transmitting via the communications bus to a display module data indicative of the determined withdrawal percent and the determined amount of the benefit payment available, and displaying the received data by the display module.

12. The computer-implemented method of claim 9, wherein the data stored in the memory storage device comprises data indicative of values of the withdrawal percent during the accumulation phase corresponding to ages of a relevant life, the withdrawal percent value increasing with the age of the relevant life.

13. The computer-implemented method of claim 9, wherein the amount of the benefit payment available during a time period during the accumulation phase without reduction of the payment base value is based on the withdrawal percent and a greater of the payment base value and the contract value.

14. The computer-implemented method of claim 9, wherein at least one of the time periods is one year in duration.

15. The computer-implemented method of claim 14, the term for which the benefit payments are guaranteed to be available is a lifetime of the relevant life.

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

access data relating to a deferred annuity contract, the deferred annuity contract having a payment base value, a contract value, and benefit payments available, for a term and in accordance with a guarantee, during each of a plurality of time periods during the term and during an accumulation phase of the deferred annuity contract, without reduction of the payment base value, the data being stored in a memory storage device in communication with the processor, the stored data including the payment base value, the contract value, and data associated with determining a value of a withdrawal percent, the data indicative that the value of the withdrawal percent is greater than zero and automatically increases during the accumulation phase and after a first of the benefit payments;

determine, based on the accessed data, a value of the withdrawal percent applicable to a date during the accumulation phase;

based on the value of the withdrawal percent and either the payment base value or the contract value, determine an amount of the benefit payment available during a time period during the accumulation phase without reduction of the payment base value; and

provide an output signal having data indicative of the determined amount of the benefit payment available during the time period without reduction of the payment base value.

17. The non-transitory computer-readable medium of claim 16, wherein the instructions, when executed by a processor, further cause the processor to:

responsive to receipt of a request for a withdrawal, determine a total amount of withdrawals, including the requested withdrawal, during a current one of the time periods;

compare the determined total amount of withdrawals to the determined amount of the benefit payment available during the time period without reduction of the payment base value; and

responsive to determining via the comparison that the determined total amount of withdrawals is not greater than the determined amount of the benefit payment available during the time period without reduction of the payment base value, provide an output signal having data indicative that the payment base value will not be reduced as a result of the requested withdrawal.

18. The non-transitory computer-readable medium of claim 16, wherein the instructions, when executed by a processor, further cause the processor to:

responsive to receipt of a request for a withdrawal, determine a total amount of withdrawals, including the requested withdrawal, during a current one of the time periods;

compare the determined total amount of withdrawals to the determined amount of the benefit payment available during the time period without reduction of the payment base value; and

responsive to determining via the comparison that the determined total amount of withdrawals is greater than the determined amount of the benefit payment available during the time period without reduction of the payment base value, provide an output signal having data indicative that the payment base value will be reduced as a result of the requested withdrawal.

19. The non-transitory computer-readable medium of claim 16, wherein, in accordance with the guarantee, the benefit payments are available from a predetermined age of a covered life and for a lifetime of the covered life.

20. The non-transitory computer-readable medium of claim 16, wherein the data associated with determining a value of a withdrawal percent comprises data indicating a plurality of withdrawal percent values corresponding to ages of a relevant life.