METHOD AND SYSTEM FOR PROVIDING MINIMUM CONTRACT VALUES IN AN ANNUITY WITH LIFETIME BENEFIT PAYMENTS

• US 20090132300A1
• Filed: 01/23/2009
• Published: 05/21/2009
• Est. Priority Date: 04/21/2007
• Status: Active Grant

• Current Assignee: Talcott Resolution Life Insurance Co. (DSG)
• Original Assignee: Hartford Fire Insurance Company (The Hartford Financial Services Group, Inc.)
• Inventors: Weiss, Joseph M., Tatro, Charles D., Andrade, Maria Leonard
• Granted Patent: US 7,949,601 B2
• Time in Patent Office: Days
• US Class Current: 705/4
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• 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
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

A data processing method administers a deferred annuity contract during the accumulation phase for a relevant life. The annuity contract has a contract value, a guarantee of lifetime benefit payments and a minimum contract value. Administration of the contract determines a minimum contract value, while paying a lifetime benefit payment and a guaranteed death benefit. The lifetime benefit payment does not reduce the contract value below the minimum contract value. If necessary, the lifetime benefit payment is funded by the general account assets of the company that issues the annuity contract.

Claims

1. A data processing system for administering a deferred variable annuity contract during the accumulation phase, said system comprising:

a communications module for receiving information for said deferred variable annuity contract;

a data storage module coupled to said communications module for storing said received information;

a processing module coupled to said date storage module for determining a minimum contract value, for determining a guaranteed death benefit amount and for determining a payment base, said minimum contract value changes over time, and wherein said guaranteed death benefit amount changes over time; and

a payment module coupled to said processing module for receiving periodic premium payments during said accumulation phase;

said payment module being coupled to said provider for paying lifetime benefit payments during said accumulation phase;

wherein said payment module provides excess withdrawal payments during said accumulation phase, and wherein said excess withdrawal payments are in excess of said lifetime benefit payments.

9. The data processing system of claim 1 wherein said lifetime benefit payments is a function of said payment base and a withdrawal percentage, and wherein said withdrawal percentage is a function of age of a relevant life.

12. The data processing system of claim 1 wherein said periodic premium payments are received only if requested by a relevant life.

2. The data processing system of claim 2 wherein said payment module provides a death benefit amount upon a death of said relevant life.

3. The data processing system of claim 3, wherein said periodic premium payments increases said payment base, said guaranteed death benefit amount and a contract value.

4. The data processing system of claim 3, wherein said lifetime benefit payments paid to said relevant life decreases said contract value and said guaranteed death benefit amount.

5. The data processing system of claim 4, wherein said excess withdrawal payments decrease said contract value, said payment base and said guaranteed death benefit amount.

6. The data processing system of claim 5 wherein said lifetime benefit payments does not decrease said contract value below said minimum contract value.

7. The data processing system of claim 6 wherein said withdrawal payments decrease said contract value below said minimum contract value.

8. The data processing system of claim 7 wherein said death benefit amount is a greater of said guaranteed death benefit amount or said contract value.

10. The data processing system of claim 8 wherein said minimum contract value is a function of a predetermined withdrawal percentage and said payment base.

11. The data processing system of claim 8 wherein said minimum contract value is a function of a predetermined percentage and total premiums received.

13. A data processing method for administering a deferred variable annuity contract during an accumulation phase, the method comprising the steps of:

receiving, via a communications module, information for the deferred variable annuity contract;

storing, via a data storage module, the received information;

determining, via a processing module coupled to the data storage module, a minimum contract value;

determining, via the processing module coupled to the data storage module, a guaranteed death benefit amount;

determining, via the processing module coupled to the data storage module, a payment base;

receiving, via a payment module coupled to the processing module, periodic premium payments during the accumulation phase;

paying, via the payment module coupled to the processing module, lifetime benefit payments to a relevant life during the accumulation phase;

paying, via the payment module coupled to the processing module, excess withdrawal payments to the relevant life during the accumulation phase.

14. The computer implemented method of claim 13 further comprising the step of paying, via the payment module, a death benefit upon a death of the relevant life.

15. The computer implemented method of claim 14 further comprising the step of increasing, via the processing module, the payment base when the periodic premium payments are received.

16. The computer implemented method of claim 15 further comprising the step of decreasing, via the processing module, the contract value and the guaranteed death benefit amount when the lifetime benefit payments are paid.

17. The computer implemented method of claim 16 further comprising the step of decreasing, via the processing module, the payment base and the guaranteed death benefit amount when the excess withdrawal payments are paid.

18. The computer implemented method of claim 17 wherein the lifetime benefit payments does not decrease the contract value below the minimum contract value.

19. The computer implemented method of claim 18 further comprising the step of decreasing, via the processing module, the contract value below the minimum contract value, wherein the contract value is decreased when the excess withdrawal payments are paid.

20. The computer implemented method of claim 19 wherein the death benefit amount is a greater of the guaranteed death benefit amount or the contract value.

21. The computer implemented method of claim 13 wherein the lifetime benefit payments is a function of the payment base and a withdrawal percentage, and wherein the withdrawal percentage is a function of age of the relevant life.

22. The computer implemented method of claim 21 wherein the minimum contract value is a function of a predetermined withdrawal percentage and the payment base.

23. The computer implemented method of claim 21 wherein the minimum contract value is a function of a predetermined percentage and total premiums.

24. The computer implemented method of claim 13 wherein the lifetime benefit payments are paid only if requested by the relevant life;

25. The computer implemented method of claim 13 wherein the excess withdrawal payments are made only if requested by the relevant life.