Abstract: Processes, systems, and computer-readable storage media value and administer a variable annuity having a guaranteed minimum withdrawal benefit (GMWB) feature such that an investor can receive a guaranteed rising stream of income. The GMWB feature can be adapted to help create a guaranteed income stream that will last as long as the Covered Person(s) live(s) even if the entire value of the contract has been reduced to zero provided that withdrawals taken are within the parameters of the feature. The GMWB feature can “lock-in” an increased Income Base at the end of a predetermined period that is equal to the greater of (1) actual investment gains on the contract period or (2) an income credit based upon an Income Credit Base, adjusted by withdrawals taken in the prior period. The contract owner may withdraw an amount less than or equal to a Maximum Periodic Withdrawal Amount in each Benefit Period without reducing the Income Base or the Income Credit Base.

Abstract: Aspects of the present disclosure allow an insurance company or other institution to manage its risk by establishing a charge consistent with hedging costs in offering a minimum guarantee on an underlying investment product to its customers. Such guarantees on underlying investment products may be included in, but are not limited to, variable annuities and contingent deferred annuities (CDA). Embodiments of a process are disclosed by which the charge for a guaranteed benefit in an investment product on underlying investments can vary by investor based on actual investment behavior. Advantageously, the insurance company or other institution can better manage its risk by reducing exposure from the actual experience compared to the investment behavior assumption and enable benefits to be charged more precisely for the actual risk taken (e.g., the insurance company can offer lower cost benefits for customers who are more risk averse).