Method and system for providing minimum contract values in an annuity with lifetime benefit payments

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

a communications module for receiving information for said deferred variable annuity contract;

a data storage module coupled to said communications module for storing said received information;

a processing module coupled to said date storage module for determining a minimum contract value, for determining a guaranteed death benefit amount and for determining a payment base, and wherein said guaranteed death benefit amount is not less than said minimum contract value; and

a payment module coupled to said processing module for receiving periodic premium payments during said accumulation phase;

said payment module being coupled to said provider for paying lifetime benefit payments during said accumulation phase, the lifetime benefit payments being available up to a maximum amount on a periodic basis during the accumulation phase for a lifetime of a relevant life;

wherein said payment module provides excess withdrawal payments during said accumulation phase, and wherein said excess withdrawal payments are in excess of said lifetime benefit payments and may decrease said contract value below said minimum contract value; and

wherein said lifetime benefit payments do not decrease said contract value below said minimum contract value, provided that no excess withdrawal payment has been made.

2. The data processing system of claim 1 wherein said payment module provides a death benefit amount upon a death of said relevant life.

3. The data processing system of claim 2 , wherein said periodic premium payments increases said payment base, said guaranteed death benefit amount and a contract value.

4. The data processing system of claim 3 , wherein said lifetime benefit payments paid to said relevant life decrease said contract value and said guaranteed death benefit amount and do not decrease said payment base.

5. The data processing system of claim 3 , wherein said excess withdrawal payments decrease said contract value, said payment base and said guaranteed death benefit amount.

6. The data processing system of claim 2 wherein said death benefit amount is a greater of said guaranteed death benefit amount or said contract value.

7. The data processing system of claim 6 wherein said minimum contract value is a function of a predetermined withdrawal percentage and said payment base.

8. The data processing system of claim 6 wherein said minimum contract value is a function of a predetermined percentage and total premiums received.

9. The data processing system of claim 1 wherein said lifetime benefit payments is a function of said payment base and a withdrawal percentage, and wherein said withdrawal percentage is a function of age of a relevant life.

10. The data processing system of claim 1 wherein said periodic premium payments are received only if requested by a relevant life.

11. A data processing method for administering a deferred variable annuity contract during an accumulation phase, the method comprising the steps of:

receiving, via a communications module, information for the deferred variable annuity contract;

storing, via a data storage module, the received information;

determining, via a processing module coupled to the data storage module, a minimum contract value;

determining, via the processing module coupled to the data storage module, a guaranteed death benefit amount not less than the minimum contract value;

determining, via the processing module coupled to the data storage module, a payment base;

receiving, via a payment module coupled to the processing module, periodic premium payments during the accumulation phase;

paying, via the payment module coupled to the processing module, lifetime benefit payments to a relevant life during the accumulation phase, the lifetime benefit payments being available up to a maximum amount on a periodic basis during the accumulation phase for a lifetime of the relevant life;

paying, via the payment module coupled to the processing module, excess withdrawal payments to the relevant life during the accumulation phase, wherein said excess withdrawal payments are greater than the lifetime benefit payments and may decrease said contract value below said minimum contract value, and

wherein said lifetime benefit payments do not decrease said contract value below said minimum contract value, provided that no excess withdrawal payment has been made.

12. The computer implemented method of claim 11 further comprising the step of paying, via the payment module, a death benefit upon a death of the relevant life.

13. The computer implemented method of claim 11 further comprising the step of increasing, via the processing module, the payment base when the periodic premium payments are received.

14. The computer implemented method of claim 11 further comprising the step of decreasing, via the processing module, the contract value and the guaranteed death benefit amount to an amount not less than the minimum contract value when the lifetime benefit payments are paid, provided that no excess withdrawal payment has been made.

15. The computer implemented method of claim 11 further comprising the step of decreasing, via the processing module, the payment base and the guaranteed death benefit amount when the excess withdrawal payments are paid.

16. The computer implemented method of claim 11 further comprising the step of decreasing, via the processing module, the contract value below the minimum contract value, wherein the contract value is decreased when the excess withdrawal payments are paid.

17. The computer implemented method of claim 16 wherein the death benefit amount is a greater of the guaranteed death benefit amount or the contract value.

18. The computer implemented method of claim 11 wherein the lifetime benefit payments is a function of the payment base and a withdrawal percentage, and wherein the withdrawal percentage is a function of age of the relevant life.

19. The computer implemented method of claim 18 wherein the minimum contract value is a function of a predetermined withdrawal percentage and the payment base.

20. The computer implemented method of claim 18 wherein the minimum contract value is a function of a predetermined percentage and total premiums.

21. The computer implemented method of claim 11 wherein the lifetime benefit payments are paid only if requested by the relevant life.

22. The computer implemented method of claim 11 wherein the excess withdrawal payments are made only if requested by the relevant life.