System and method for processing and administering immediate and deferred guaranteed income payments

Abstract

A system is provided for administering immediate and deferred payments in any of a plurality of different payout schemes selected by a purchaser to accommodate varying retirement income needs. The system can be configured to administer an immediate income annuity where payments start within a predetermined time period year and the system can also administer a deferred payout annuity through a single dual natured payout contract. Additional options available for administration by the system include options to permit the contract owner to change the annuity commencement date and the ability to commute future period certain periodic payments into a single lump sum payment.

1 . A computer system for administering a guaranteed income annuity having immediate and deferred payout options in a single guaranteed income product comprising:
 a communications port adapted to receive information relating to the immediate and deferred payout options in the single product;   a processor coupled to the communications port, the processor adapted to process the received information and determine one or more payment amounts based on the received information;   the processor further adapted to provide an output indicative of instructions for one or more payments to be made based on the determined payment amounts, wherein the payments have immediate or deferred payout options arising out of the single guaranteed income product expressed as a base contract and a deferred rider coupled to the base contract.   
     
     
         2 . The system of  claim 1 , wherein the received information includes a contract issue date, an annuity commencement date and an amount of an initial premium. 
     
     
         3 . The system of  claim 2 , further comprising a memory, the memory adapted to store the contract issue date, the commencement date, the amount of the initial premium, and the determined payment amounts. 
     
     
         4 . The system of  claim 2 , wherein the processor is further adapted to dynamically adjust payment amounts in response to a change to the annuity commencement date provided the deferred payout option is selected. 
     
     
         5 . The system of  claim 2 , wherein the processor is responsive to commutation instructions for determining commutation option qualification and calculating a commutation amount for payment. 
     
     
         6 . The system of  claim 1 , further comprising a display component for providing a visual representation of the immediate and deferred payment options in the single guaranteed income product. 
     
     
         7 . A financial processing system for administering a financial product having both immediate and deferred payment options associated with a single payment contract comprising:
 at least one agent computer configured for processing the immediate and deferred payment options associated with the single payment contract; the at least one agent computer further configured for modeling a plurality of immediate and deferred payment options in the single payment contract based at least in part on parameters associated with the single payment contract for the financial product, including an annuity commencement date that can vary from an immediate to a deferred option within the single payment contract; and   at least one server computer in communication with the at least one agent computer, the server configured for administering the immediate and deferred payment options associated with the single payment contract, wherein the server computer is configured for calculating and establishing payments based on the immediate and deferred payment options in the single payment contract, the payments being based at least in part on said parameters, the immediate payout option offering a payout stream commencing less than a predetermined time period from the contract issue date and the deferred payment option offering a increased payout stream commencing more than said predetermined time period from the contract issue date, both the immediate payout and deferred payout streams being made available in the single payment contract.   
     
     
         8 . The system of  claim 7 , wherein said parameters associated with the single payment contract further include the contract issue date, a premium amount, and a payout rate associated with the single payment contract. 
     
     
         9 . The system of  claim 7 , wherein said predetermined time period is one year. 
     
     
         10 . The system of  claim 7 , wherein the server computer includes one or more data storage devices for storing payout contract payment schedules. 
     
     
         11 . The system of  claim 10 , wherein said server computer is configured for calculating an annuity commencement date change rider. 
     
     
         12 . The system of  claim 11 , wherein said annuity commencement date change rider changes said annuity commencement date for the deferred payment option. 
     
     
         13 . The system of  claim 7 , further comprising a display component for providing a visual representation of the immediate and deferred payment options in the single payment contract. 
     
     
         14 . The system of  claim 7 , said server computer further configured for calculating a commutation rider, wherein said commutation rider commutes remaining payments in the deferred payout stream. 
     
     
         15 . A computer-implemented method for administering an annuity product having immediate and deferred options available in a single contract, the method comprising the steps of:
 receiving information for the payout annuity product having immediate and deferred options, the information including an annuity commencement date from a selection of both immediate and deferred options in a single contract, an issue date, annuitant information and an annuity payment amount;   determining via a computer processor, amounts of payments in a stream of guaranteed periodic annuity payments based on the received information; and   generating indicia indicative of payment based on the calculated payment amounts, the payment amount reflecting an immediate or a deferred payout scenario arising out of the single contract.   
     
     
         16 . The computer implemented method of  claim 15 , wherein the received information includes data indicative of an annuity commencement date, an issue date, annuitant information, and an annuity payment amount. 
     
     
         17 . The computer implemented method of  claim 15 , wherein the received information is received via an electronic communication device and further includes information related to a payment increase. 
     
     
         18 . The computer implemented method of  claim 17 , further comprising the step of calculating, via the computer processor, a commutation rider, wherein the commutation rider commutes a remaining portion of the guaranteed periodic annuity payments. 
     
     
         19 . The computer implemented method of  claim 15 , wherein the contract comprises a base contract and a deferred rider. 
     
     
         20 . The computer implemented method of  claim 15 , wherein the annuity product is a fixed payout annuity product.