System and method for cross funding of multiple annuity contracts

• US 20040172350A1
• Filed: 11/15/2002
• Published: 09/02/2004
• Est. Priority Date: 11/15/2002
• Status: Abandoned Application

• Current Assignee: Genworth Financial Incorporated
• Original Assignee: Genworth Financial Incorporated
• Inventors: Fay, Mary, Snyder, Holly, Sharpe, Matthew, Stiff, Geoffrey, Haley, Paul, Root, Vickey, Atkinson, Landis
• Application Number:
  US10/294,820
• Publication Number:
  US 20040172350A1
• Time in Patent Office: Days
• US Class Current: 705/35
• 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

Abstract

A process for cross funding of multiple annuity contracts is provided wherein a funding annuity contract is used to fund another annuity contract. The funding annuity contract may be used to transfer funds to the another annuity contract in multiple transfers.

Claims

1. A process for cross funding of multiple annuity contracts, wherein a funding annuity contract is used to fund another annuity contract, the process comprising the steps of:

a. identifying multiple annuity needs of a user;

b. selecting an annuity type to meet each of the user'"'"'s multiple annuity needs;

c. the user entering into an annuity contract for each selected annuity type with an issuer company;

d. the user declaring an intent to combine the multiple annuities and treating the multiple annuities as one annuity for purposes of tax treatment;

e. combining the multiple annuities for accounting;

f. purchasing the funding annuity contract to be used to make multiple transfers between the annuity contracts; and

g. following an accumulation period, making periodic annuity distributions to the user from each of the annuity contracts.

2. The process for cross funding of multiple annuity contracts as claimed in claim 1 wherein the step of combining the multiple annuities for accounting includes the sub-steps of:

a. aggregating a contract value of each of the multiple annuities;

b. allocating a premium payment amount for each of the multiple annuities;

c. establishing an annuity commencement date for each of the multiple annuities such that each of the multiple annuities annuitize in conjunction with each of the other multiple annuities;

d. scheduling an accumulation period for each of the multiple annuities to be the same accumulation period;

e. annuitizing each of the multiple annuities in conjunction with each of the other multiple annuities; and

f. making periodic annuity distributions to the user from each of the funded annuity contracts.

3. The process for cross funding of multiple annuity contracts as claimed in claim 1 wherein the step of the user entering into an annuity contract for each selected annuity type comprises the user entering into the annuity contract for each selected annuity type simultaneously.

4. The process for cross funding of multiple annuity contracts as claimed in claim 1 wherein the step of the user entering into an annuity contract for each selected annuity type comprises the user entering into the annuity contract for each selected annuity type at different times.

5. The process for cross funding of multiple annuity contracts as claimed in claim 1 further comprising the step of making one or more transfers between the funding annuity contract to the another annuity contract, following the purchasing step, based upon pre-defined trigger events.

6. The process for cross funding of multiple annuity contracts as claimed in claim 1 further comprising the step of making one or more transfers between the funding annuity contract and the another annuity contract, following the purchasing step, on an at-will basis based upon the user'"'"'s direction.

7. The process for cross funding of multiple annuity contracts as claimed in claim 5 wherein the trigger events include an age of the user, a value of funds in the funding annuity contract, or a value of funds in the another annuity contract.

8. The process for cross funding of multiple annuity contracts as claimed in claim 2 wherein the step of combining the multiple annuities for accounting further includes the sub-step of the issuer defining a single commission payable for the combined purchase of the selected annuities.

9. The process for cross funding of multiple annuity contracts as claimed in claim 1 wherein the purchasing step comprises the user making a lump sum payment.

10. The process for cross funding of multiple annuity contracts as claimed in claim 1 wherein the purchasing step comprises the user exchanging funds invested in a pre-existing annuity contract.

11. The process for cross funding of multiple annuity contracts as claimed in claim 1 wherein either of the annuity contracts may be the funding annuity contract for any of the multiple transfers.

12. The process for cross funding of multiple annuity contracts as claimed in claim 1 wherein the multiple annuity contracts are administered on an integrated system shared by each of the issuer companies.

13. A process for annuitizing a cross-funded annuity contract in conjunction with another cross-funded annuity contract comprising the steps of:

a. identifying multiple annuity payment needs of a user;

b. selecting one of the multiple annuity payment needs of the user as a preferred annuitization option;

c. the user transferring monies between the cross-funded annuity contracts to fund the preferred annuitization option; and

d. combining the multiple annuity payment needs for payment and accounting.

14. The process for annuitizing a cross-funded annuity contract in conjunction with another cross-funded annuity contract as claimed in claim 13 further comprising the step of annuitizing each of the cross-funded annuity contracts at the same time following the combining step.