Patent ID: 7664700

Claim:
A system for administering a payout option of an individual annuity contract of a contract owner, wherein said individual annuity contract is a variable annuity contract or a fixed annuity contract, said system comprising: a memory including data relating to said individual annuity contract stored therein, said data including an associated payout option which permits the contract owner of said individual annuity contract to request and withdraw from the annuity during a payout phase of the individual annuity contract; a processor operatively coupled to said memory configured to read the associated payout option, to provide that option to a system user, and to calculate and issue a payout in response to a request from said contract owner for a surrender of said annuity; and wherein the system is configured to provide to the user during a payout phase a selectable option with which the user interacts to surrender the annuity to obtain a payout of principal in its entirety for surrendering the annuity contract during the payout phase; wherein the surrender amount corresponds to a value of the annuity that is a present value of the stream of future annuity payments under the annuity contract.