System and Method for Retail Longevity Protection Program

摘要

A system and method for managing a retail longevity protection program. The longevity protection managed by the invention includes a single premium annuity combined with a customized loan program designed to pay the required single premium. The loan is paid down by the annuity benefit payments until fully paid off. The longevity protection program provides a stream of payments throughout the life of the program participant without ceding control of the investments and, thus, the investment risk undertaken by the program participant.;In the preferred form, the longevity protection program takes the form of a fund rider. In this rider, designated a Lifetime Income Fund Enhancement (“LIFE”) Rider, the program participant selects from his or her existing investment accounts, such as a mutual fund, to which account the participant would like to add longevity protection. In this form, a loan, collateralized by the fund assets, is originated to purchase a single premium annuity. The initial annuity payments fund the loan repayment until it is fully repaid, with any subsequent annuity payments accruing to the program participant's mutual fund account. The result is a fund performance that has enhanced returns the longer the participant survives at the expense of diminished fund returns in the event of an earlier death.

主权项

1. A computer-implement retail longevity protection method for allowing an individual to protect against longevity risk by participating in a longevity protection program in which assets are held in a designated account for the benefit of said individual and said assets are designated as eligible collateral for said longevity protection program, a loan is originated for the benefit of said individual and secured by said assets, an annuity is purchased with the proceeds of said loan for the benefit of said individual, the payments of which annuity are contingent upon said individual remaining alive, said loan is repaid with said payments while said individual remains alive, with the remaining loan balance, if any, of said loan repaid after said individual has died with said assets or liquidation proceeds of said assets, the method comprising:
storing data for said assets, said loan and said annuity in at least one computer memory, accessing the at least one computer memory with at least one computer processor and executing instructions to perform steps including:
associating data for said assets with data for said loan,associating data for said loan with data for said annuity,associating data for said annuity to said account, andprocessing periodic annuity payments such that they are credited to the loan balance or asset account of said individual.