Method and system for providing a deferred variable annuity with lifetime benefit payments related to a withdrawal percent and a deferral bonus percent

• US 7,949,584 B2
• Filed: 11/15/2007
• Issued: 05/24/2011
• Est. Priority Date: 11/15/2007
• 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: Weiss, Joseph M.
• Primary Examiner(s): Colbert; Ella
• Assistant Examiner(s): TRAMMELL, JAMES P
• Application Number:
  US11/985,467
• Publication Number:
  US 20090132430A1
• Time in Patent Office: 1,286 Days
• Field of Search: 705/36, 705/90
• US Class Current: 705/35
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• 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 40/04 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 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 benefit payments. A maximum annual benefit payment withdrawal amount available without reducing the payment base value is calculated by multiplying the payment base value by a factor including a deferral bonus percent, which is a function of a number of years deferred by the relevant life until taking a first lifetime benefit payment.

Claims

1. A data processing system for administering a deferred variable annuity contract, the annuity contract having a payment base value, a contract value representing an amount of funds subject to investment control by a contract owner, and benefit payments, said system comprising:

a storage device;

a processor coupled to the storage device, the storage device storing modules utilized by the processor for calculating a withdrawal base, for determining a withdrawal percent, and for calculating a benefit payment;

wherein the benefit payment withdrawal available for withdrawal at the discretion of a relevant life in a year without reduction of the withdrawal base is calculated using the following formula;

((Withdrawal Percent+deferral bonus percent)×

(Withdrawal Base)); and

wherein the deferral bonus percent is a function of the number of years deferred by the relevant life until taking a first lifetime benefit payment.

2. A system for administering a deferred variable annuity contract during the accumulation phase, the annuity contract having a payment base value, a contract value representing an amount of funds subject to investment control by a contract owner, and benefit payments, comprising:

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 the contract owner in order to establish a deferred variable annuity contract;

ii. a second module for determining a payment base value for the annuity contract;

iii. a third module for determining a contract value for the annuity contract representing an amount of funds subject to investment control by the contract owner;

iv. a fourth module for receiving benefit payment withdrawal requests from a relevant life; and

iv. a fifth module for calculating a benefit payment for the relevant life which decreases the contract value and does not decrease the payment base if the withdrawal in a year period is not more than ((Withdrawal Percent+deferral bonus percent)×

(Withdrawal Base)) wherein the deferral bonus percent is a function of the number of years deferred by the relevant life until taking a first benefit payment.

3. 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 representing an amount of funds subject to investment control by a contract owner, and benefit payments, said method comprising the steps of:

a. calculating by a processor the value of a withdrawal base and storing the withdrawal base value in a memory device ;

b. determining by the processor a withdrawal percent;

c. if requested by a relevant life, calculating by the processor a benefit payment withdrawal for the relevant life which decreases the contract value and thereby reduces an amount of funds subject to investment control by the contract owner;

wherein the benefit payment withdrawal available in a year period without reduction of the withdrawal base is calculated using the following formula;

((Withdrawal Percent+deferral bonus percent)×

(Withdrawal Base)); and

wherein the deferral bonus percent is a function of the number of years deferred by the relevant life until taking a first benefit payment.

4. The computer implemented data processing method of claim 3, wherein said withdrawal base equals the amount of the original premium.

5. The computer implemented data processing method of claim 3, wherein said withdrawal base equals the payment base.

6. The computer implemented data processing method of claim 3 wherein said withdrawal base equals the contract value.

7. The computer implemented data processing method of claim 3, wherein said withdrawal base equals the greater of the payment base and the contract value.

8. The computer implemented data processing method of claim 3, wherein the deferral bonus percent is between 0.00% and 1.00% for every 5 years of deferral before the relevant life takes a first benefit payment.

9. The computer implemented data processing method of claim 3, wherein the deferral bonus percent is 0.50% for every 5 years of deferral before the relevant life takes a first benefit payment.

10. The computer implemented data processing method of claim 3, wherein the deferral bonus percent is 0.75% for every 5 years of deferral before the relevant life takes a first benefit payment.

11. The computer implemented data processing method of claim 3, wherein the deferral bonus percent is 1.00% for every 5 years of deferral before the relevant life takes a first benefit payment.

12. The computer implemented data processing method of claim 3, wherein the withdrawal percent is a function of the relevant life'"'"'s attained age.

13. The computer implemented data processing method of claim 12, wherein the withdrawal percent is calculated using a given relationship between the withdrawal percent and attained age of the relevant life that provides a particular withdrawal percent for each respective attained age of the relevant life'"'"'s life.

14. The computer implemented data processing method of claim 13, wherein the withdrawal percent chart has a withdrawal percent between 1% and 10% for any given attained age.

15. The computer implemented data processing method of claim 13, wherein the withdrawal percent chart has a maximum withdrawal percent between 0% and 10% for any given attained age.

16. The computer implemented data processing method of claim 13, wherein each of the attained ages equal to or greater than 80 years old of the withdrawal percent chart has a withdrawal percent between 0% and 10%.

17. The computer implemented data processing method of claim 13, wherein the withdrawal percent relationship increases the withdrawal percent 0.5% for every 5 year increase in the relevant life.

18. The computer implemented data processing method of claim 3, wherein the benefit payment is calculated periodically.

19. The computer implemented data processing method of claim 3, wherein the benefit payment is calculated yearly.

20. The computer implemented data processing method of claim 3, wherein the benefit payment withdrawal that is requested by the relevant life is less than the maximum available amount for that period.

21. The computer implemented data processing method of claim 3, wherein once the first benefit payment withdrawal is taken, the withdrawal percent is fixed for the remainder of the contract.

22. The computer implemented data processing method of claim 3, further comprising the step of:

calculating a death benefit for a beneficiary upon the death of the relevant life, wherein the death benefit is the greater of;

(a) predetermined guaranteed death benefit amount; and

(b) present contract value.

23. The computer implemented data processing method of claim 3, wherein the guaranteed death benefit is paid to the beneficiary only if the relevant life dies during the accumulation phase.