Method and system for a deferred variable annuity with lifetime benefit payments as a function of an inflation adjustment factor

A system for administering a deferred variable annuity contract during the accumulation phase, the annuity contract including a payment base value, a contract value, and lifetime benefit payments for a relevant life, comprising:

• a storage device including data relating to:
• the deferred variable annuity contract,
• the lifetime benefit payments,
• the payment base value, and
• the contract value;
• and
• a processor operatively coupled to the storage device to read said data,
• the storage device storing modules utilized by the processor, the modules comprising:
• i. a first module for receiving information in order to establish the deferred variable annuity contract;
• ii. a second module for receiving lifetime benefit payment withdrawal requests;
• iii. a third module for calculating a maximum available lifetime benefit payment;
• wherein the maximum available lifetime benefit payment is calculated according to the following formula:
• ((withdrawal percent) ×(withdrawal base) ×(adjustment factor));
• wherein the withdrawal percent is predetermined according to a withdrawal percent relationship and
• wherein the third module is further for determining the adjustment factor at a time of a lifetime benefit payment request based on (1) a period of deferral from a time the lifetime benefit payment withdrawal was first available until a first lifetime benefit payment withdrawal request;
• and (2) a period of time since the first lifetime benefit payment withdrawal request;
• and
• wherein withdrawals paid to the relevant life do not decrease the payment base when the withdrawals during a year are not more than the maximum available lifetime benefit payment.

A system for administering a deferred variable annuity contract during the accumulation phase, the annuity contract including a payment base value, a contract value, and lifetime benefit payments for a relevant life, comprising:

• a storage device including data relating to:
• the deferred variable annuity contract,
• the lifetime benefit payments,
• the payment base value, and
• the contract value;
• and
• a processor operatively coupled to the storage device to read said data,
• the storage device storing modules utilized by the processor, the modules comprising:
• a. a first module for calculating the payment base;
• b. a second module for calculating the contract value;
• c. a third module for calculating a withdrawal percent relationship;
• d. a fourth module for calculating a maximum available lifetime benefit payment wherein the maximum available lifetime benefit payment is calculated using the following formula:
• ((withdrawal percent) ×(withdrawal base) ×(adjustment factor));
• and
• wherein the withdrawal percent is predetermined according to a withdrawal percent relationship and wherein the fourth module is further for calculating the adjustment factor based on (1) a period of deferral from a time the lifetime benefit payment withdrawal was first available until a first lifetime benefit payment withdrawal request;
• and (2) a period of time since the first lifetime benefit payment withdrawal request;
• and
• wherein withdrawals paid to the relevant life do not decrease the payment base when the withdrawals during a year are not more than the maximum available lifetime benefit payment.

A system for administering a deferred variable annuity contract during the accumulation phase, the annuity contract including a payment base value, a contract value, and lifetime benefit payments for a relevant life, comprising:

• a storage device including data relating to:
• the deferred variable annuity contract,
• the lifetime benefit payments,
• the payment base value, and
• the contract value;
• and
• a processor operatively coupled to the storage device to read said data,
• the storage device storing a module utilized by the processor, comprising:
• an administration module operative to calculate a maximum available lifetime benefit payment, wherein the maximum available lifetime benefit payment is calculated using:
• ((withdrawal percent)×(withdrawal base)×(adjustment factor));
• and
• wherein the withdrawal percent is predetermined according to a withdrawal percent relationship and
• wherein the adjustment factor is at least 1 and has a value based on (1) a period of deferral from a time the lifetime benefit payment withdrawal was first available until a first lifetime benefit payment withdrawal request;
• and (2) a period of time since the first lifetime benefit payment withdrawal request;
• and
• wherein withdrawals paid to the relevant life do not decrease the payment base when the withdrawals during a year are not more than the maximum available lifetime benefit payment.

A computer implemented data processing method for administering a deferred variable annuity product during the accumulation phase, the annuity product including a payment base, a contract value, and lifetime benefit payments for a relevant life, said method comprising the steps of:

• a. calculating by a processor the payment base for said annuity contract;
• b. calculating by the processor the contract value for said annuity contract;
• c. calculating by the processor a withdrawal percent relationship;
• d. if requested, periodically calculating by the processor a lifetime benefit payment withdrawal for the relevant life from the contract which decreases the contract value;
• wherein a maximum available lifetime benefit payment is calculated by the following formula:
• ((withdrawal percent)×(withdrawal base)×(adjustment factor));
• and
• wherein the withdrawal percent is calculated using said withdrawal percent relationship and wherein the adjustment factor is at least 1 and has a value based on (1) a period of deferral from a time the lifetime benefit payment withdrawal was first available until a first lifetime benefit payment withdrawal request;
• and (2) a period of time since the first lifetime benefit payment withdrawal request;
• wherein withdrawals paid to the relevant life do not decrease the payment base when withdrawals during a year are not more than the maximum available lifetime benefit payment.