Method and system for processing data relating to investment products having a payment guarantee

• US 8,447,636 B2
• Filed: 06/22/2012
• Issued: 05/21/2013
• Est. Priority Date: 07/24/2007
• Status: Expired due to Fees

• Current Assignee: Hartford Fire Insurance Company (The Hartford Financial Services Group, Inc.)
• Original Assignee: Hartford Fire Insurance Company (The Hartford Financial Services Group, Inc.)
• Inventors: Tatro, Charles D., Wiland, David P.
• Primary Examiner(s): Shrestha, Bijendra K
• Application Number:
  US13/530,359
• Publication Number:
  US 20120259799A1
• Time in Patent Office: 333 Days
• Field of Search: 705/4, 705/36.R, 705/37, 705/39
• US Class Current: 705/4
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A computer system for processing data relating to an investment arrangement having an account value dependent on investment performance and available for withdrawal by an account owner includes a data storage device storing data indicative of a present account value, a withdrawal factor value, a present payment base value, and a guarantee of payments available periodically for a term without reduction of the payment base value; and a processor. The processor is configured to, for periods after a first withdrawal, determine the present payment base value by comparing a present account value to a prior period account value, a periodic increase in the payment base value being limited to a maximum percentage; and determine an available maximum withdrawal without reduction of the payment base value based on the withdrawal factor value and a greater of the present account value and the present payment base value.

Claims

1. A computer system for processing data relating to an investment arrangement having an account value dependent on investment performance and available for withdrawal by an account owner, comprising:

a data storage device storing data indicative of a prior period account value, a present account value, a withdrawal factor value, a prior period payment base value, and a guarantee of payments available for a term in a plurality of periods without reduction of the payment base value;

a processor in communication with the data storage device;

a non-transitory computer-readable medium in communication with the processor, the non-transitory computer-readable medium having computer-executable instructions stored thereon, which instructions, when executed by the processor, cause the processor to;

determine a present payment base value based on the present account value and the prior period payment base value, the processor being configured to limit a periodic increase in the payment base value to a maximum percentage;

for each of a plurality of periods, including periods after a first withdrawal, determine an available maximum withdrawal without reduction of the payment base value for a current one of the periods based on a greater of;

(i) a value based on the withdrawal factor value and the present account value; and

(ii) a value based on the withdrawal factor value and the present payment base value; and

provide data indicative of the determined available maximum withdrawal amount via a communication bus to a display device for display to a computer system user; and

a display device in communication with the communication bus and the processor and configured to display the determined available maximum withdrawal amount.

2. The computer system of claim 1, wherein the investment arrangement is a deferred variable annuity during the accumulation phase.

3. The computer system of claim 1, wherein the instructions further cause the processor to determine the available maximum withdrawal without reduction of the payment base value to be equal to a greater of:

(i) a product of the withdrawal factor value and the present account value; and

(ii) a product of the withdrawal factor value and the present payment base value.

4. The computer system of claim 1, wherein the data indicative of the guarantee comprises data indicative of a guarantee of payments available for a term equal to a lifetime of a relevant life.

5. The computer system of claim 1, wherein the data indicative of a withdrawal factor value comprises data indicative of a plurality of withdrawal factor values, each of the withdrawal factor values corresponding to a range of ages of a relevant life.

6. The computer system of claim 1, wherein the data indicative of a guarantee of payments available for a term in a plurality of periods is data indicative of a guarantee of payments available in a plurality of one year periods.

7. The computer system of claim 1, wherein the instructions further cause the processor to, responsive to receipt of data indicative of a request for a withdrawal, determine an updated account value by subtracting an amount of the withdrawal from the present account value.

8. The computer system of claim 1, wherein the instructions further cause the processor to, responsive to receipt of data indicative of a request for a withdrawal, determine a sum of withdrawals during a current period, the sum including an amount of the received request for withdrawal, compare the sum of the withdrawals to the available maximum withdrawal without reduction of the payment base value, and, responsive to determining, as a result of the comparing, that the sum of withdrawals during the current period is not greater than the available maximum withdrawal without reduction of the payment base value, provide, to the display device, output data indicative that the payment base is not changed as a result of the withdrawal.

9. The computer system of claim 1, wherein the instructions further cause the processor to, responsive to receipt of data indicative of a request for a withdrawal, determine a sum of withdrawals during a current period, the sum including an amount of the received request for withdrawal, compare the sum of the withdrawals to the available maximum withdrawal without reduction of the payment base value, and, responsive to determining, as a result of the comparing, that the sum of withdrawals during the current period is greater than the available maximum withdrawal without reduction of the payment base value, determine a reduced payment base value as a result of the withdrawal, and provide to the display device output data indicative of the determined reduced payment base value.

10. A computer-implemented method of processing data relating to an investment arrangement having an account value dependent on investment performance and available for withdrawal by an account owner, comprising:

determining by a processor a present payment base value of the account based on data indicative of a prior period payment base value and a present account value accessed by the processor from a data storage device, the processor being in communication with a non-transitory computer-readable medium, the non-transitory computer-readable medium having computer-executable instructions stored thereon, which instructions, when executed by the processor, cause the processor to increase the payment base value on a periodic basis by no more than a maximum percentage increase;

for at least one of a plurality of periods, including periods after a first withdrawal, determining by the processor an available maximum withdrawal without reduction of the payment base value, based on a greater of;

(i) a value based on the withdrawal factor value and the present account value; and

(ii) a value based on the withdrawal factor value and the present payment base value, the available maximum withdrawal being the maximum available, in accordance with associated data indicative of a guarantee of payments available for a term in a plurality of periods without reduction of the payment base value;

providing by the processor data indicative of the determined available maximum withdrawal amount via a communication bus to a display device; and

displaying the determined available maximum withdrawal amount by the display device.

11. The computer-implemented method of claim 10, wherein the investment arrangement is an annuity, and further comprising:

accessing by the processor data indicative of a total of premiums paid in connection with the annuity; and

determining an initial payment base value equal to the accessed total of premiums paid.

12. The computer-implemented method of claim 10, wherein the data indicative of a guarantee comprises data indicative of a guarantee of payments available for a lifetime of a relevant life.

13. The computer-implemented method of claim 10, further comprising:

receiving by the processor via a communication device data indicative of a request for a withdrawal;

determining by the processor a sum of withdrawals during a current period, the sum including the amount of the received request for withdrawal;

comparing by the processor the sum of the withdrawals to the available maximum withdrawal without reduction of the payment base value; and

responsive to determining, as a result of the comparing, that the sum of withdrawals during the current period is not greater than the available maximum withdrawal without reduction of the payment base value, providing, to the display device, output data indicative that the payment base value is not changed as a result of the withdrawal; and

displaying by the display device data indicative that the payment base value is not changed as a result of the withdrawal.

14. The computer-implemented method of claim 10, further comprising;

receiving by the processor via a communication device data indicative of a request for a withdrawal;

determining by the processor a sum of withdrawals during a current period, the sum including the amount of the received request for withdrawal;

comparing by the processor the sum of the withdrawals to the available maximum withdrawal without reduction of the payment base value;

responsive to determining, as a result of the comparing, that the sum of withdrawals during the current period is more than the available maximum withdrawal without reduction of the payment base value, determining by the processor a reduced payment base value as a result of the withdrawal;

providing by the processor to the display device output data indicative of the determined reduced payment base value; and

displaying by the display device data indicative of the reduced payment base value.

15. The computer-implemented method of claim 10, further comprising:

responsive to receipt of data indicative of a request for a withdrawal, providing by the processor to a payment module in communication with the processor data indicative of instructions for payment of the withdrawal amount to a relevant life; and

furnishing by the payment module to the relevant life a payment in accordance with the data indicative of instructions for payment provided by the processor.

16. A non-transitory computer-readable storage medium having a plurality of computer-executable instructed stored thereon, the instructions, when executed by a processor, causing the processor to:

access from a data storage device data relating to an investment account, the data relating to the investment account comprising a prior period payment base value, a present account value and a withdrawal factor value;

determine a present payment base value based on the present account value and a prior period account value, the instructions causing the processor to limit a periodic increase in the payment base value to a maximum percentage increase;

for at least one of a plurality of periods, including periods after a first withdrawal from the investment account, determine an available maximum withdrawal without reduction of the payment base value, for a current period based on a greater of;

(i) a value based on the withdrawal factor value and the present account value; and

(ii) a value based on the withdrawal factor value and the present payment base value, the available maximum withdrawal being the maximum available, in accordance with associated data indicative of a guarantee of payments available for a term in a plurality of periods without reduction of the payment base value; and

provide output data indicative of the determined available maximum withdrawal amount via a communication bus to a display device for display to a computer system user.

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

access from the data storage device data indicative of a prior period account value;

compare the prior period account value to the present account value;

responsive to determining, as a result of the comparing, that the present account value is not greater than the prior period account value, determine that the present payment base value is equal to the prior period payment base value; and

provide output data indicative of the present payment base value via the communication bus to the display device for display to a computer system user.

18. The non-transitory computer-readable storage medium of claim 16, wherein the instructions further cause the processor to provide data indicative of instructions for generation of a customer communication including data indicative of the determined maximum withdrawal amount.

19. The non-transitory computer-readable storage medium of claim 16, wherein the instructions further cause the processor to determine the current account value by accessing from the data storage device data indicative of values of a plurality of sub-accounts, and summing the values of the sub-accounts to determine the current account value.

20. The non-transitory computer-readable storage medium of claim 16, wherein the data indicative of the withdrawal factor value comprises data indicative of the withdrawal factor value dependent on an age of a relevant life.