System for monitoring increasing income financial products

Abstract

The investment account structure provides increasing income financial products wherein each subscriber invests in a financial contractual product/program and designates beneficiaries. The beneficiary is assigned, along with other who are demographically similar, to a contract group. The financial product contract is funded with principal payments or premiums paid by subscribers. Income is provided by contractual terms to surviving beneficiaries of the same assigned contract group on an increasing, survivorship basis until (a) all the initial primary beneficiaries die; or (b) the contract expires based upon the expiration of preestablished time periods. Upon expiration, secondary beneficiaries receive pro rata shares.

1 . A method of monitoring and maintaining a financial product, purchased by a plurality of subscribers, paying increasing income to a plurality of primary beneficiaries based upon their comparable survival in a predetermined group including the steps of: 
 obtaining subscriber payments for funding said increasing income financial product,    establishing a plurality of contracts for a corresponding plurality of primary beneficiaries, each primary beneficiary of said plurality of primary beneficiaries designating a corresponding secondary beneficiary;    segregating said plurality of primary beneficiaries into a plurality of contract groups, each contract group utilizing one contract of said plurality of contracts, wherein each primary beneficiary of a respective contract group has (i) substantially similar demographics as compared with others in the same contract group, and (ii) a substantially similar contract compared with others in the same contract group;    assuring compliance with contractual parameters which parameters define unique attributes of a respective contract of said plurality of contracts, said contractual parameters including: 
 (i) a beginning of an increasing income payment period,  
 (ii) an expiration parameter representing an ending of said increasing income payment period,  
 (iii) the presence or absence of an income target value, and,  
 (iv) the presence or absence of an invasion of principal parameter;  
 directing the investment of funds created by said subscriber payments for said plurality of contracts;  
   directing and reporting the payment of increasing income to primary beneficiaries surviving others in said respective contract group of said plurality of contract groups; and,    directing and reporting the payment of principal to said secondary beneficiaries upon the occurrence of said expiration parameter for said respective contract group.    
     
     
         2 . A method as claimed in  claim 1  wherein the step of assuring compliance with the contractual parameter of said income target value utilizes factors relative to income generation from a predetermined investment, prospective and realized capital gain, and an investment time factor associated with said predetermined investment.  
     
     
         3 . A method as claimed in  claim 1  including the step of assuring compliance with a closure contractual parameter, said closure contractual parameter including one from the group of a maximum number of primary beneficiaries in said contract group, a total monetary limit associated with said respective contract for said respective contract group, and a predetermined time period.  
     
     
         4 . A method as claimed in  claim 1  wherein said contractual parameter relative to said beginning of an increasing income payment period is an inception parameter, said inception parameter is at least one parameter from the group including a minimum number of primary beneficiaries in said contract group, a minimum monetary limit associated with said respective contract for said respective contract group, a predetermined time from acceptance of payment from a subscriber on behalf of a primary beneficiary, and a contractually identified event.  
     
     
         5 . A method as claimed in  claim 4  including the step of refunding and reporting all payments made by a respective subscriber on behalf of a corresponding primary beneficiary upon determining, via said assuring compliance step, that the corresponding contract for said respective subscriber either (i) does not meet or (ii) exceeds the inception parameter associated with said corresponding contract.  
     
     
         6 . A method as claimed in  claim 1  including the steps of determining a return on investment; projecting said return on investment over a predetermined future time period and determining whether said return on investment and the projected return on investment is less than a predetermined value.  
     
     
         7 . A method as claimed in  claim 6  wherein said respective contract includes the presence of said income target value.  
     
     
         8 . A method as claimed in  claim 4  wherein, in said step of assuring compliance, said inception parameter correlates to a beginning of an accumulation of income time period which will, at some time in the future, support increasing income payments to surviving primary beneficiaries in a respective contract group.  
     
     
         9 . A method as claimed in  claim 8  wherein said step of assuring compliance includes assuring compliance with a contractual closure parameter, said closure parameter including one from the group of a maximum number of primary beneficiaries in said contract group, a total monetary limit associated with said respective contract for said respective contract group, and a predetermined time period, said closure parameter relating to a predetermined closure event which, as a result thereof, said administrator is contractually prohibited from placing additional primary beneficiaries into said respective contract group.  
     
     
         10 . A method as claimed in  claim 9  wherein, in said step of assuring compliance, said expiration parameter relates to said end of said accumulation of income time period and payment of increasing income payments to surviving primary beneficiaries in a respective contract group, and an occurrence of said expiration parameter event triggering said step of directing and reporting the payment of principal.  
     
     
         11 . A method as claimed in  claim 10  wherein, in said step of assuring compliance, said income target value utilizes factors including income generation from a predetermined investment, prospective and realized capital gain, and an investment time factor associated with said predetermined investment.  
     
     
         12 . A method as claimed in  claim 11  wherein, in said step of assuring compliance, said invasion of principal parameter relates to said administrator utilizing said subscriber payments to pay increasing income to primary beneficiaries surviving others in said respective contract group.  
     
     
         13 . A method as claimed in  claim 12  including the steps of computing a return on investment; projecting said return on investment over a predetermined future time period and determining whether said return on investment and the projected return on investment is less than a predetermined value.  
     
     
         14 . A method as claimed in  claim 1  including the step of investing said funds created by said subscriber payments in accordance with said contractual parameters, said step of investing said funds is executed substantially independently with respect to the steps of establishing a plurality of contracts, obtaining subscriber payments and directing payment of said increasing income.  
     
     
         15 . A method as claimed in  claim 1  wherein said expiration parameter includes the step of determining at least one from the group of (i) whether all primary beneficiaries have died; (ii) a predetermined time has past since said beginning of said increasing income payment period; (iii) the occurrence of a predetermined contractual event.  
     
     
         16 . A method as claimed in  claim 1  wherein said step assuring compliance with said contractual parameter of the presence or absence of said income target value includes monitoring factors relative to at least two from the group of income generation from a predetermined investment, realized capital gain, unrealized capital gain, prospective capital gain, and a time factor associated with said predetermined investment.  
     
     
         17 . A method for establishing a financial product, purchased by a plurality of subscribers, paying increasing income to a plurality of primary beneficiaries based upon their comparable survival, the method comprising: 
 segregating said plurality of primary beneficiaries into a plurality of groups having similar actuarial characteristics;    assuring compliance with contractual parameters for each group, said contractual parameters including: 
 (i) a beginning of an increasing income payment period,  
 (ii) an expiration of said increasing income payment period,  
 (iii) the presence or absence of an income target value, and,  
 (iv) the presence or absence of an invasion of principal parameter;  
   monitoring the investment of funds created by said subscriber payments on behalf of said primary beneficiaries in compliance with said contractual parameters; and    directing the payment of increasing income to primary beneficiaries surviving others in the respective group.    
     
     
         18 . A method as claimed in  claim 17  wherein each primary beneficiary designates a corresponding secondary beneficiary and the method includes directing the payment of principal to said secondary beneficiaries upon the occurrence of said expiration parameter for said respective group and wherein the steps of processing transactions and subscriber payments, and directing increasing income payments and principal payments are executed substantially independently from the step of monitoring the investment of finds.  
     
     
         19 . A method as claimed in  claim 18  including the step of establishing a telecommunications link to coordinate and exchange data relative to said processing transactions and said monitoring the investment of funds.  
     
     
         20 . A method of establishing a financial product, purchased by a plurality of subscribers making payments for funding said increasing income financial product, paying increasing income to a plurality of primary beneficiaries based upon their comparable survival, the method comprising: 
 segregating said plurality of primary beneficiaries into a plurality of groups having similar actuarial characteristics;    assuring compliance with contractual parameters for each group, said contractual parameters including: 
 (i) a beginning of an increasing income payment period,  
 (ii) an expiration of said increasing income payment period,  
 (iii) the presence or absence of an income target value, and,  
 (iv) the presence or absence of an invasion of principal parameter;  
   directing the investment of funds created by said subscriber payments on behalf of said primary beneficiaries in compliance with said contractual parameters; and    directing the payment of increasing income to primary beneficiaries surviving others in the respective group.    
     
     
         21 . A method as claimed in  claim 20  wherein each primary beneficiary designates a corresponding secondary beneficiary and the method includes directing the payment of principal to said secondary beneficiaries upon the occurrence of said expiration parameter for said respective group and wherein the step of assuring compliance with the contractual parameter of said income target value utilizes factors relative to income generation from a predetermined investment, prospective and realized capital gain, and an investment time factor associated with said predetermined investment.  
     
     
         22 . A method as claimed in  claim 20  including the step of assuring compliance with a closure contractual parameter, said closure contractual parameter including one from the group of a maximum number of primary beneficiaries in the respective group, a total monetary limit associated with said respective group, and a predetermined time period.  
     
     
         23 . A method as claimed in  claim 20  wherein said contractual parameter relative to said beginning of an increasing income payment period is an inception parameter, said inception parameter is at least one parameter from the group including a minimum number of primary beneficiaries in said respective group, a minimum monetary limit associated with said respective group, a predetermined time from acceptance of payment from a subscriber on behalf of a primary beneficiary, and a contractually identified event.  
     
     
         24 . A method as claimed in  claim 23  including the step of directing the refunding of all payments made by a respective subscriber on behalf of a corresponding primary beneficiary upon determining, via said assuring compliance step, that the respective subscriber's payments either (i) do not meet or (ii) the inception parameter associated with the contractual parameters for said respective group.  
     
     
         25 . A method as claimed in  claim 20  including the steps of determining a return on investment; projecting said return on investment over a predetermined future time period and determining whether said return on investment and the projected return on investment is less than a predetermined value.  
     
     
         26 . A method as claimed in  claim 25  wherein the contractual parameters for said respective group include the presence of said income target value.  
     
     
         27 . A method as claimed in  claim 23  wherein, in said step of assuring compliance, said inception parameter correlates to a beginning of an accumulation of income time period which will, at some time in the future, support increasing income payments to surviving primary beneficiaries in said respective group.  
     
     
         28 . A method as claimed in  claim 27  wherein said step of assuring compliance includes assuring compliance with a contractual closure parameter, said closure parameter including one from the group of a maximum number of primary beneficiaries in said respective group, a total monetary limit associated with said respective group, and a predetermined time period, said closure parameter relating to a predetermined closure event which, as a result thereof, additional primary beneficiaries cannot be added to said respective group.  
     
     
         29 . A method as claimed in  claim 28  wherein, in said step of assuring compliance, said expiration parameter relates to said end of said accumulation of income time period and payment of increasing income payments to surviving primary beneficiaries in a respective group, and an occurrence of said expiration parameter event triggering said step of directing the payment of principal.  
     
     
         30 . A method as claimed in  claim 29  wherein, in said step of assuring compliance, said income target value utilizes factors including income generation from a predetermined investment, prospective and realized capital gain, and an investment time factor associated with said predetermined investment.  
     
     
         31 . A method as claimed in  claim 30  wherein, in said step of assuring compliance, said invasion of principal parameter relates to utilizing said subscriber payments to pay increasing income to primary beneficiaries surviving others in said respective group.  
     
     
         32 . A method as claimed in  claim 31  including the steps of computing a return on investment; projecting said return on investment over a predetermined future time period and determining whether said return on investment and the projected return on investment is less than a predetermined value.  
     
     
         33 . A method as claimed in  claim 20  including the step of directing the investment of said funds created by said subscriber payments in accordance with said contractual parameters, said step of directing investment is executed substantially independently with respect to the steps of obtaining said subscriber payments and directing payment of said increasing income.  
     
     
         34 . A method as claimed in  claim 20  wherein said expiration parameter includes the step of determining at least one from the group of (i) whether all primary beneficiaries have died; (ii) a predetermined time has past since said beginning of said increasing income payment period; (iii) the occurrence of a predetermined contractual event.  
     
     
         35 . A method as claimed in  claim 20  wherein said step assuring compliance with said contractual parameter of the presence or absence of said income target value includes monitoring factors relative to at least two from the group of income generation from a predetermined investment, realized capital gain, unrealized capital gain, prospective capital gain, and a time factor associated with said predetermined investment.  
     
     
         36 . A method as in  claim 20  wherein said comparable survival is determined by reference to a mortality table.  
     
     
         37 . A method as in  claim 20  wherein said financial product is a private pension plan.  
     
     
         38 . A method as in  claim 20  wherein said directing the investment of funds further comprises maintaining at least a pre-set return on investment for said investment of funds.  
     
     
         39 . A computerized method for monitoring and maintaining a financial product, purchased by a plurality of subscribers, paying increasing income to a plurality of primary beneficiaries based upon their comparable survival in a predetermined group including the steps of: 
 providing a computer system for processing transactions, including subscriber payments, investment tracking and increasing income payments, and for reporting the status of beneficiary accounts;    monitoring, via said computer system, the establishment of a plurality of contracts for a corresponding plurality of primary beneficiaries, each primary beneficiary of said plurality of primary beneficiaries designating a corresponding secondary beneficiary;    segregating said plurality of primary beneficiaries into a plurality of contract groups, each with a respective type of contract, wherein each primary beneficiary of a respective contract group has (i) substantially similar demographics as compared with others in the same contract group, and (ii) a substantially similar contract compared with others in the same contract group;    monitoring, via said computer system, compliance with contractual parameters which parameters define unique attributes of a respective type of contract for said respective contract group, said contractual parameters including: 
 (i) a beginning of an increasing income payment period, said beginning of said increasing income period selected by said primary beneficiary after a term of years and based upon the presence or absence of a prior constant level income payment period,  
 (ii) an expiration parameter representing an ending of said increasing income payment period,  
 (iii) the presence or absence of an income target value, and,  
 (iv) the presence or absence of an invasion of principal parameter;  
   monitoring, via said computer system, the investment of funds created by said subscriber payments on behalf of said primary beneficiaries in compliance with said contractual parameters for said plurality of contracts;    directing and reporting, via said computer system, the payment of increasing income to primary beneficiaries surviving others in said respective contract group of said plurality of contract groups.    
     
     
         40 . A computerized method for monitoring and maintaining a financial product as claimed in  claim 39  wherein one type of contract, of said plurality of contracts, includes an annuity, a pension and an irrevocable trust.  
     
     
         41 . A computerized method for monitoring and maintaining a financial product as claimed in  claim 39  wherein mortality tables are used in segregating primary beneficiaries.  
     
     
         42 . A computerized method for monitoring and maintaining a financial product as claimed in  claim 41  the type of contract is an irrevocable trust and monitoring the investment of funds includes monitoring one or more certificates of deposit, stocks, bonds, commodities and real estate financial investments.  
     
     
         43 . A method for establishing a financial product, purchased by a plurality of subscribers, paying increasing income to a plurality of primary beneficiaries based upon their comparable survival, the method comprising: 
 segregating said plurality of primary beneficiaries into a plurality of groups having similar actuarial characteristics;    assuring compliance with contractual parameters for each group, said contractual parameters including: 
 (i) a beginning of an increasing income payment period, said beginning of said increasing income period selected by said primary beneficiary after a term of years and based upon the presence or absence of a prior constant level income payment period,  
 (ii) an expiration of said increasing income payment period,  
 (iii) the presence or absence of an income target value, and,  
 (iv) the presence or absence of an invasion of principal parameter;  
   monitoring the investment of funds created by said subscriber payments on behalf of said primary beneficiaries in compliance with said contractual parameters; and    directing the payment of increasing income to primary beneficiaries surviving others in the respective group.    
     
     
         44 . A method for establishing a financial product as claimed in  claim 43  wherein one type of contract, of said plurality of contracts, includes an annuity, a pension and an irrevocable trust.  
     
     
         45 . A method for establishing a financial product as claimed in  claim 43  wherein mortality tables are used in segregating primary beneficiaries.  
     
     
         46 . A method for establishing a financial product as claimed in  claim 44  the type of contract is an irrevocable trust and monitoring the investment of funds includes monitoring one or more certificates of deposit, stocks, bonds, commodities and real estate financial investments.