Method and apparatus for determining additional benefits and costs for an annuity contract

Abstract

A method for determining additional death benefits with respect to an annuity contract, the annuity contract being stored in a computer system. The method comprises generating data corresponding to an annuity contract, at least a portion of the data corresponding to information indicating whether an additional beneficiary rider has been selected. If the additional beneficiary rider has been selected in the annuity contract, calculating an additional death benefit to be added to the payments to be provided by the annuity contract.

What is claimed is:  
     
         1 . A method for determining additional death benefits with respect to an annuity contract, the annuity contract being stored in a computer system, the method comprising: 
 generating data corresponding to an annuity contract, at least a portion of the data corresponding to information indicating whether an additional beneficiary rider has been selected;    if the additional beneficiary rider has been selected as part of the annuity contract, calculating an additional death benefit to be added to the payments to be provided by the annuity contract;    adding the additional death benefit to the current annuity death benefit to generate a total death benefit.    
     
     
         2 . The method of  claim 1  further comprising: 
 calculating a current cost of the additional death benefit, if the additional beneficiary rider has been selected as part of the annuity contract; and  
 adding the current cost to a current annuity cost that is charged to an owner of the annuity contract.  
 
     
     
         3 . The method of  claim 2  wherein the step of calculating a current cost of the additional death benefit comprises the steps of: 
 calculating a maximum monthly cost;  
 calculating a charge value, the charge value being approximately equal to a current percentage charge value multiplied by the total cash value of the annuity contract; and  
 setting the current cost value to be the lesser of the charge value and the maximum monthly cost.  
 
     
     
         4 . The method of  claim 3  wherein the step of calculating a maximum current cost comprises the steps of: 
 determining a mortality rate value for the annuity contract; and  
 multiplying the mortality rate value by the total value of the additional death benefit available as part of the annuity contract.  
 
     
     
         5 . The method of  claim 4  wherein the mortality rate value comprises a 1980 Commissioners Standard Ordinary Male/Female Aggregate Age Last Birthday Ultimate Rate.  
     
     
         6 . The method of  claim 1  wherein the step of calculating an additional death benefit comprises the steps of: 
 determining the death benefit to be paid out according to the annuity contract;  
 determining the total of all of the premiums paid into the annuity contract;  
 determining the total of any withdrawals from the annuity contract;  
 subtracting the total of any withdrawals from the total of all of the premiums paid into the annuity contract to generate a first subtracted total;  
 subtracting the first subtracted total from the death benefit to be paid out according to the annuity contract to generate a second subtracted total;  
 if the second subtracted total is greater than zero, setting the additional death benefit to a value of the second subtracted total multiplied by a selected percentage value; and  
 if the second subtracted total is less than or equal to zero, setting the additional death benefit value to zero.  
 
     
     
         7 . The method of  claim 6  wherein the selected percentage value is . approximately equal to 28%.  
     
     
         8 . The method of  claim 1  wherein the additional death benefit comprises an additional income tax benefit.  
     
     
         9 . The method of  claim 1  wherein the additional death benefit comprises an additional benefit for funeral expenses.  
     
     
         10 . A method that determines tax benefits and costs for an annuity contract comprising: 
 generating an annuity contract;    determining whether the annuity contract includes a beneficiary rider selected by the owner of the annuity contract;    if the beneficiary rider has been selected, calculating an additional death benefit for the annuity contract; and    adding the additional death benefit to a death benefit to be paid out by the annuity contract.    
     
     
         11 . The method of  claim 10  further comprising calculating a cost of the additional death benefit, if the beneficiary rider has been selected and adding the cost value to an annuity cost value that is charged to a holder of the annuity contract to generate a total annuity cost.  
     
     
         12 . The method of  claim 11  wherein the step of calculating the cost of the additional death benefit comprises the steps of: 
 calculating a maximum current cost;  
 calculating a charge value, the charge value being approximately equal to a percentage charge value multiplied by the cash value of the annuity contract; and  
 setting the current cost to be the lesser of the charge value and the maximum current cost.  
 
     
     
         13 . The method of  claim 12  wherein the step of calculating a maximum current cost comprises the steps of: 
 determining a mortality rate value for the annuity contract; and  
 multiplying the mortality rate value by the total value of the additional death benefit available as part of the annuity contract.  
 
     
     
         14 . The method of  claim 13  wherein the mortality rate value comprises a 1980 Commissioners Standard Ordinary Male/Female Aggregate Age Last Birthday Ultimate Rate.  
     
     
         15 . The method of  claim 10  wherein the step of calculating an additional death benefit comprises the steps of: 
 determining a rider value based upon a death benefit to be provided by the annuity contract;  
 determining the total paid in value; and  
 setting the additional death benefit to the rider value.  
 
     
     
         16 . The method of  claim 15  wherein the step of determining a rider value comprises the steps of: 
 subtracting a total of any withdrawals to date from a total of all of the premiums paid into the annuity contract to generate the total paid in value;  
 subtracting the total paid in value from the additional death benefit to be provided by the annuity contract to generate a total value;  
 determining if the second subtracted total is greater than zero;  
 if the second subtracted total is greater than zero, setting the rider value to a value of the second subtracted total multiplied by a percentage value; and  
 if the second subtracted total is less than or equal to zero, setting the rider value to zero.  
 
     
     
         17 . The method of  claim 16  wherein the percentage value is approximately equal to 28%.  
     
     
         18 . The method of  claim 10  wherein the additional death benefit comprises an additional income tax benefit.  
     
     
         19 . The method of  claim 10  wherein the additional death benefit comprises an additional benefit for funeral expenses.  
     
     
         20 . An apparatus for calculating tax benefits and costs for an annuity contract comprising: 
 a storage device; and    a processor coupled to the storage device,    the storage device storing instructions that are utilized by the processor, the instructions comprising: 
 a receive instruction that instructs the processor to receive data comprising an annuity contract;  
 a determine instruction that instructs the processor to determine whether the annuity contract includes a beneficiary rider;  
 a calculate instruction that instructs the processor to calculate an additional death benefit, if the annuity contract includes the beneficiary rider; and  
 combine instruction that instructs the processor to add the additional benefit to the current annuity death benefit, if the annuity contract includes the beneficiary rider.  
   
     
     
         21 . The apparatus of  claim 20  wherein the storage device further comprises a cost instruction that instructs the processor to calculate a current cost of the beneficiary rider.  
     
     
         22 . The apparatus of  claim 21  wherein the cost instruction comprises: 
 a first cost instruction that instructs the processor to calculate a maximum current cost;  
 a second cost instruction that instructs the processor to calculate a charge value, the charge value being approximately equal to a current percentage charge value multiplied by the cash value of the annuity contract; and  
 a third cost instruction that instructs the processor to set the current cost to be the lesser of the charge value and the maximum current cost.  
 
     
     
         23 . The apparatus of  claim 22  wherein the first cost instruction comprises 
 a fourth cost instruction that instructs the processor to determine a mortality rate value for the holder of the annuity contract; and  
 a fifth cost instruction that instructs the processor to multiply the mortality rate value by the additional death benefit value.  
 
     
     
         24 . The apparatus of  claim 23  wherein the mortality rate value comprises a 1980 Commissioners Standard Ordinary Male/Female Aggregate Age Last Birthday Ultimate Rate.  
     
     
         25 . The apparatus of  claim 20  wherein the calculate instruction comprises: 
 a first calculate instruction that instructs the processor to determine a rider value based upon a death benefit to be provided by the annuity contract and the total paid in value; and  
 a second calculate instruction that instructs the processor to set the additional death benefit to the rider value.  
 
     
     
         26 . The apparatus of  claim 25  wherein the first calculate instruction comprises: 
 a third calculate instruction that instructs the processor to subtract a total of any withdrawals to date from a total of all of the premiums paid into the annuity contract to generate the total paid in value;  
 a fourth calculate instruction that instructs the processor to subtract the total paid in value from the death benefit to be provided by the annuity contract to generate a total value;  
 a fifth calculate instruction to determine if the second subtracted total is greater than zero; and  
 a sixth calculate instruction to set the additional death benefit to a value of the second subtracted total multiplied by a percentage value and to set the additional death benefit value to zero depending on if the subtracted total is greater than zero.  
 
     
     
         27 . The apparatus of  claim 26  wherein the percentage value is approximately equal to 28%.  
     
     
         28 . The method of  claim 20  wherein the additional death benefit comprises an additional income tax benefit.  
     
     
         29 . The method of  claim 20  wherein the additional death benefit comprises an additional benefit for funeral expenses.