US 2011/0035239 A1 · System, method, and computer program product for valuing and administering annuity with guaranteed minimum withdrawal benefit to generate rising withdrawal stream

Abstract

Processes, systems, and computer-readable storage media value and administer a variable annuity having a guaranteed minimum withdrawal benefit (GMWB) feature such that an investor can receive a guaranteed rising stream of income. The GMWB feature can be adapted to help create a guaranteed income stream that will last as long as the Covered Person(s) live(s) even if the entire value of the contract has been reduced to zero provided that withdrawals taken are within the parameters of the feature. The GMWB feature can “lock-in” an increased Income Base at the end of a predetermined period that is equal to the greater of (1) actual investment gains on the contract period or (2) an income credit based upon an Income Credit Base, adjusted by withdrawals taken in the prior period. The contract owner may withdraw an amount less than or equal to a Maximum Periodic Withdrawal Amount in each Benefit Period without reducing the Income Base or the Income Credit Base.

Claims24

Dependent claims

A method for administering an annuity account with an increasing income stream, the annuity account having an account value based on funds allocated to at least one investment and a term including a plurality of periods of time, the method comprising:

establishing an initial income base that is independent of the account value;
establishing a minimum periodic increase of the income base;
establishing a maximum periodic withdrawal amount that can be withdrawn in one period without affecting the income base;
and
using an annuity valuation processor to execute a valuation application to determine annuity information
for the annuity account, the valuation application periodically increasing the maximum periodic withdrawal amount based upon (i) the account value, (ii) the income base with the minimum periodic increase of the income base applied, or (iii) a predetermined combination of the account value and the income base with the minimum periodic increase of the income base applied.

3 more elements

A computer-readable storage medium bearing instructions for administering an annuity account of an annuitant, the annuity account having an account value based on funds allocated to at least one investment, the annuity account having a term including a plurality of periods of time, an income base, a minimum periodic increase of the income base, and a maximum periodic withdrawal amount in one period that may be withdrawn without affecting an income base, the instructions, when executed by a computer, cause the computer to perform the steps of:

setting an initial value for the income base;
setting an initial value for the minimum periodic increase of the income base;
setting an initial value for the maximum periodic withdrawal amount;
periodically determining the value of the annuity based upon the account value of the annuity at the end of the period;
periodically determining the income base based upon (i) the periodic value of the annuity, (ii) the income base with the minimum periodic increase of the income base applied, or (iii) a predetermined combination of the periodic value and the income base with the minimum periodic increase of the income base applied;
and
periodically determining the maximum periodic withdrawal amount based upon the income base.

4 more elements

A system for administering an annuity contract comprising:

a valuation processor adapted to execute a valuation application for an annuity account of an annuitant, the annuity account having funds allocated to at least one investment, the annuity account having a term including a plurality of periods of time, an account value based upon the value of the funds allocated to at least one investment, an income base for determining a guaranteed benefit, a maximum periodic withdrawal amount in a period that may be withdrawn without affecting the income base, and a minimum periodic increase of the income base;
and
a data storage device, the data storage device containing annuity account information, the data storage device operably arranged with the valuation processor such that the annuity account information in the storage device is accessible to the valuation processor and is modifiable by the valuation processor;
wherein the valuation application executed by the valuation processor:
periodically determines the account value of the annuity,
periodically determines the income base using (i) the account value, (ii) the income base with the minimum periodic increase of the income base applied, or (iii) a predetermined combination of the account value and the income base with the minimum periodic increase of the income base applied, and
periodically determines the maximum withdrawal amount in a period based upon the income base.

4 more elements

Dependencies are inferred from the claim text.

System, method, and computer program product for valuing and administering annuity with guaranteed minimum withdrawal benefit to generate rising withdrawal stream

Life of this patent

System, method, and computer program product for valuing and administering annuity with guaranteed minimum withdrawal benefit to generate rising withdrawal stream

Life of this patent

Abstract

Claims24