Computer based method of pricing equity indexed annuity product with lock-in

Abstract

The present invention broadly comprises a computer-based method for determining a set of equity-indexed crediting parameters C for a selectable-term equity-indexed deposit product also having a set of profitability requirements R, a principal amount P, an account value A, a maximum term T, a set of lock-in formulas F, a selected term T′, an immediate credit I, and a guaranteed rate G, with R, P, A, T, C, and F determined at the time of product purchase and T′ <=T determined by the purchaser after the time of purchase and I and G determined by the seller at T′ according to the set of formulas F, with the immediate credit I being added to the account value A at time T′ and interest being credited to the account value A at the rate G from time T′ to time T.

1 - 25 . (canceled) 
     
     
         26 . A computerized method of providing an annuity product lock-in provision; the method comprising the steps of:
 basing a first calculated interest on an equity index;   basing a second calculated interest on a declared rate;   calculating an index earning based in part on the first calculated interest and the second calculated interest;   establishing a lock-in date if a lock-in is requested; and   crediting the index earning to an account value for the annuity product on the lock-in date.   
     
     
         27 . The method of  claim 26  wherein the annuity product comprises a point-to-point indexing term. 
     
     
         28 . The method of  claim 26  further comprising the step of offering an enhanced guaranteed death benefit rider. 
     
     
         29 . The method of  claim 26  wherein the index earning is subject to a floor of zero. 
     
     
         30 . The method of  claim 26  wherein the annuity product comprises a predetermined indexing term. 
     
     
         31 . The method of  claim 30  wherein the lock-in date occurs before the expiration of the predetermined indexing term. 
     
     
         32 . The method of  claim 31  further comprising the step of identifying a guaranteed rate for a remainder of the indexing term after the lock-in date. 
     
     
         33 . The method of  claim 32  further comprising the step of
 providing a confirmation statement, the confirmation statement identifying information that may include:
 an amount of earnings credited to an Accumulation Value; 
 a resulting new Accumulation Value; and 
 the guaranteed rate for a remainder of the term after the lock in date. 
 
 
     
     
         34 . The method of  claim 26  further comprising the step of
 surrending the annuity product prior to an indexing term; and 
 establishing a pro-rata earnings portion based in part on the first calculated interest and the second calculated interest. 
 
     
     
         35 . The method of  claim 30  further comprising the step of declaring the equity index and the declared rate at a beginning of the indexing term. 
     
     
         36 . The method of  claim 30  further comprising the step of guaranteeing the equity index for the entire indexing term. 
     
     
         37 . The method of  claim 30  further comprising the step of guaranteeing the declared rate for the entire indexing term. 
     
     
         38 . A machine readable medium having stored thereon data representing sequences of instructions, which when executed by a computer system, cause the system to perform the steps of
 declaring a first earnings allocation for an annuity product having a predefined a term;   declaring a second earnings allocation for said annuity product;   calculating a value of the annuity product based in part on the first earnings allocation and the second earnings allocation;   determining a lock-in date for a lock-in provision; and   calculating index earnings on the lock-in date.   
     
     
         39 . The method of  claim 38  wherein the first earnings allocation for the annuity product comprises an equity indexed allocation percentage. 
     
     
         40 . The method of  claim 38  wherein the second earnings allocation for the annuity product comprises a declared rate allocation percentage. 
     
     
         41 . The method of  claim 38 , further comprising the step of:
 crediting a portion of the value from the lock-in date based on a guaranteed interest rate associated with the lock-in date.   
     
     
         42 . The method of  claim 41  further comprising the step of crediting the portion of the value from the lock-in date to a last day of the term based on the guaranteed interest rate. 
     
     
         43 . The method of  claim 38  wherein the term comprises a point to point term.