Funding and Distribution of Income Stream Payments for a Period Associated with the Longevity of Participant Individuals

A system for the provision of a stream of payments to a group of participant individuals for an indefinite period associated with the longevity of the participants, the system comprising:

• one or more computers or one or more computer servers, the one or more computers or one or more computer servers having a processor and memory storage with instructions which when executed by the processor perform predetermined functions;
• a database stored on the memory storage of the at least one or more computers or one or more computer servers;
• an information receiving function module, operable to receive information on the database relating to a plurality of potential participants, the information including mortality criteria, the database identifying common mortality criteria and/or common expected mortality calculated from some or all of the mortality criteria relating to some or all of the potential participants thereby indicating a substantially equivalent mortality risk;
• a mortality assessment function module, performed by the one or more computers or one or more computer servers, and defining, from some or all the identified common mortality criteria and/or the common expected mortality, requirements for inclusion of potential participants in one or more substantially homogeneous mortality risk groups and thereby operable to identify a plurality of participants having a substantially equivalent mortality risk as determined by meeting the requirements for inclusion in the one or more groups;
• a group formation function module, operable to form one or more groups from some or all of the identified participants, the matching of the participant in any group being operable to be selected by the participant or on behalf of the participant;
• an investment module, operable to form a group investment fund funded with the aggregation of investment payments received from or on behalf of each participant in the group and operable to invest some or all of the investment fund in an asset allocation portfolio in accordance with predetermined investment guidelines intended to grow the investment fund;
• and
• a distribution module, operable to distribute a portion of the investment fund as payments at predetermined distribution periods, the portion being made available for distribution payments at the completion of any period being calculated according to a predefined actuarially fair calculation agreed between the participants;
• wherein in operation some or all of the longevity risk is operable to be transferred to the group of participants and an income stream of payments to the participants is made available for as long as they live or until there is only a predetermined number of survivors remaining from the original group or where a predefined time has elapsed after formation of the group or after the occurrence of another predefined circumstance.

A non-transitory computer-readable medium having stored thereon instructions which, when executed by one or more computers or one or more computer servers, cause the one or more computers or one or more computer servers to perform operations to implement the distribution of an income stream of payments to a group of participant individuals for an indefinite period associated with the longevity of the participants, the operations to implement the distribution of an income stream of payments comprising:

• an information collection operation relating to the information associated with a plurality of potential participants, the information including mortality criteria;
• an identification operation, from the information collected, that identifies common mortality criteria and/or common expected mortality calculated from some or all of the mortality criteria relating to some or all of the potential participants indicating a substantially equivalent mortality risk;
• a definition operation, that defines, from some or all the identified common mortality criteria and/or the common expected mortality, requirements for inclusion of potential participants in one or more substantially homogeneous mortality risk groups;
• an identification operation, identifies a plurality of participants having a substantially equivalent mortality risk as determined by meeting the requirements for inclusion in the one or more groups;
• a group formation operation, that forms one or more groups of some or all of the identified participants, the matching of the participant in any group being selected by the participant or on behalf of the participant;
• an investment operation, that establishes a group investment fund, the investment fund being the aggregation of investment payments received from or on behalf of each participant in the group;
• an investment operation, that invests some or all of the investment fund in an asset allocation portfolio in accordance with predetermined investment guidelines intended to grow the investment fund;
• and
• a distribution operation, that distributes a portion of the investment fund as payments at predetermined distribution periods, the portion being made available for distribution payments at the completion of any period being calculated according to a predefined actuarially fair calculation agreed between the participants;
• wherein some or all of the longevity risk is transferred to the group of participants and an income stream of payments to the participants is made available for as long as they live or until there is only a predetermined number of survivors remaining from the original group or where a predefined time has elapsed after formation of the group or after the occurrence of another predefined circumstance.