Method and system for a deferred variable annuity with lifetime benefit payments governed by an age-based withdrawal percent

1. A data processing system for administering a deferred variable annuity contract during the accumulation phase, the annuity contract having a payment base value, and a contract value, said system comprising:

a storage device;

a processor coupled to the storage device, the storage device storing modules utilized by the processor for determining a present payment base, for determining a present contract value, for determining a withdrawal percent, and for calculating a maximum value of a benefit payment available for withdrawal on a periodic basis without reduction of the payment base value;

wherein the maximum available benefit payment is related to the withdrawal percent and wherein the withdrawal percent automatically increases over the term of the annuity contract and commencing after a first of the benefit payments;

wherein the maximum available benefit payment withdrawal is based on either the Present Payment Base and Withdrawal Percent or the Present Contract Value and Withdrawal Percent; and

wherein the benefit payment is guaranteed to be available for a term greater than one withdrawal period.

2. The data processing system of claim 1 , wherein the maximum available benefit payment withdrawal is calculated by the following formula:

((the Present Payment Base)×(the Withdrawal Percent)).

3. The data processing system of claim 1 , wherein the maximum available benefit payment withdrawal is calculated by the following formula:

((the Present Contract Value)×(the Withdrawal Percent)).

4. The data processing System of claim 1 , wherein the maximum available benefit payment withdrawal is Greater of ((Present Payment Base×Withdrawal Percent) or (Present Contract Value×Withdrawal Percent)).

5. A system for administering a deferred variable annuity contract during the accumulation phase, the annuity contract having a payment base value and a contract value 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 a relevant life in order to establish a deferred variable annuity contract;

ii. a second module for determining a withdrawal percent;

iii. a third module for receiving benefit payment withdrawal requests from the relevant life;

iv. a fourth module for calculating a maximum benefit payment withdrawal available periodically without reducing the payment base;

wherein the maximum benefit payment withdrawal is related to the withdrawal percent and wherein the withdrawal percent automatically increases over the term of the annuity contract and commencing, after a first of the benefit payments;

wherein the maximum available benefit payment withdrawal is based on either the Present Payment Base and Withdrawal Percent or the Present Contract Value and Withdrawal Percent; and

wherein the benefit payment is guaranteed to be available for a term greater than one withdrawal period.

6. A computer system for administering a deferred variable annuity contract during the accumulation phase, comprising:

a. means comprising a processor and a memory device coupled to the processor for determining and storing a present payment base;

b. means comprising a processor and a memory device coupled to the processor for determining and storing a present contract value;

c. means comprising a processor for determining a withdrawal percent;

d. means comprising a processor for calculating a maximum benefit payment available periodically without reducing the payment base;

wherein the maximum available benefit payment is related to the withdrawal percent and wherein the withdrawal percent automatically increases over the term of the annuity contract and after a first of the benefit payments;

wherein the maximum available benefit payment withdrawal is based on either the Present Payment Base and Withdrawal Percent or the Present Contract Value and Withdrawal Percent; and

wherein the benefit payment is guaranteed to be available for a term greater than one withdrawal period.

7. In a system for administering a deferred variable annuity contract during the accumulation phase, the improvement comprising:

administration means comprising a processor coupled to a memory device operative to calculate a benefit payment available, wherein the benefit payment is related to a withdrawal percent and wherein the withdrawal percent automatically increases over the term of the annuity contract and after a first of the benefit payments;

wherein the maximum available benefit payment withdrawal is based on either the Present Payment Base and Withdrawal Percent or the Present Contract Value and Withdrawal Percent; and

wherein the benefit payment is guaranteed to be available for a term greater than one withdrawal period.

8. 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, and a contract value, said method comprising the steps of:

a. determining by a processor a present payment base value for the annuity contract, and storing the determined present payment base value in a storage device;

b. determining by the processor a present contract value for said annuity contract;

c. determining by the processor a withdrawal percent;

d. if requested by the relevant life, calculating by the processor a maximum benefit payment withdrawal available periodically for the relevant life which decreases the contract value but does not decrease the payment base value;

wherein the maximum available benefit payment is related to the withdrawal percent and wherein the withdrawal percent automatically increases over the term of the annuity contract commencing after a first of the benefit payment withdrawals;

wherein the maximum available benefit payment withdrawal is based on either the Present Payment Base and Withdrawal Percent or the Present Contract Value and Withdrawal Percent; and

wherein the benefit payment is guaranteed to be available for a term greater than one withdrawal period.

9. The computer implemented data processing method of claim 8 , wherein the maximum available lifetime benefit payment withdrawal is calculated by the following formula:

(the Present Payment Base)×(the Withdrawal Percent).

10. The computer implemented data processing method of claim 8 , wherein the lifetime benefit payment withdrawal is calculated by the following formula:

((the Present Contract Value)×(the Withdrawal Percent)).

11. The computer implemented data processing method of claim 8 , wherein the maximum benefit payment withdrawal is Greater of ((Present Payment Base×Withdrawal Percent) or (Present Contract Value×Withdrawal Percent)).

12. The computer implemented data processing method of claim 8 , wherein the maximum available benefit payment is calculated periodically.

13. The computer implemented data processing method of claim 8 , wherein the maximum available benefit payment is calculated yearly.

14. The computer implemented data processing method of claim 8 , wherein the benefit payment is not available until a relevant life is 60 years old.

15. The computer implemented data processing method of claim 8 , wherein the Withdrawal Percent is:

a. 5.0% for benefit payment withdrawals taken between ages 60 and 64,

b. 5.5% for benefit payment withdrawals taken between ages 65 and 69,

c. 6.0% for benefit payment withdrawals taken between ages 70 and 74,

d. 6.5% for benefit payment withdrawals taken between ages 75 and 79, and

e. 7.0% for benefit payment withdrawals taken on or after age 80.

16. The computer implemented data processing method of claim 8 , wherein the amount of the benefit payment withdrawal that is requested by the relevant life is less than the maximum available amount for that period.

17. The computer implemented data processing method of claim 8 , further comprising the step of: collecting a rider fee.

18. The computer implemented data processing method of claim 8 , further comprising the step of: collecting an account maintenance fee.

19. The computer implemented data processing method of claim 8 , further comprising the step of: determining a benefit amount for said annuity contract that is equal to the premium payments minus any benefit payments or withdrawals.

20. The computer implemented data processing method of claim 19 , wherein if a withdrawal payment that is in excess of the maximum available benefit payment is requested, then the present payment base is reset to equal the present benefit amount.

21. The computer implemented data processing method of claim 19 , further comprising the step of: calculating a death benefit for a beneficiary upon the death of a relevant life, wherein the death benefit is equal to the present benefit amount.

22. The computer implemented data processing method of claim 19 , further comprising the step of: calculating a death benefit for a beneficiary upon the death of a relevant life, wherein the death benefit is the greater of: (a) the present benefit amount; and (b) the present contract value.

23. The computer implemented data processing method of claim 8 , further comprising the step of: calculating a death benefit for a beneficiary upon the death of a relevant life, wherein the death benefit is the greater of: (a) a predetermined guaranteed death benefit amount; and (b) the present contract value.

24. The computer implemented data processing method of claim 8 , wherein the value of the annuity payments equals the value of the most recent benefit payment.

25. The data processing system of claim 1 , wherein the benefit payment is guaranteed to be available for a lifetime.

26. The data processing system of claim 8 , wherein the benefit payment is guaranteed to be available for a lifetime.