System and method for incorporating a mortality risk in a financial instrument

A computer system comprising:

• at least one processor, at least one memory device and a network interface, the system configured for automated electronic processing of investment product data using a specialized secure data architecture for a constituency of investment pool members wherein each member has an investment transaction product that is in part dependent upon other member's investment transaction products, comprising:
• receiving, in memory of a data processing system, initial user inputs, for defining an investment transaction product for a user in the constituency of pool members, comprising at least:
• a) an initial funding amount;
• and
• b) at least one user payout age;
• generating and instantiating in said memory, a machine readable investment product record stored as a secure, encrypted data object having a system generated, non human readable identifier and maintained within a structured, tamper evident data repository electronic documentation associated with the user investment transaction product including security for the user investment transaction, wherein said documentation is stored in a secure, encrypted format using an identifier and is accessible via an interface;
• monitoring a plurality of external databases for an indication of death for any of said pool members, the monitoring comprising automated event detection using pattern matching logic or machine assisted correlation;
• automatically determining occurrence of a death for one or more pool members prior to their prescribed user payout age based at least in part on said step of monitoring said plurality of external databases, wherein the determining step includes filtering, validating, and cross correlating external data via a trained computational model configured to reduce false positives;
• in response to said step of automatically determining occurrence of a death of one or more pool members prior to an associated prescribed user payout age, automatically reallocating at least a portion of said deceased pool member's funds, determined to have deceased prior to their prescribed user payout age, to investment funds associated with other pool members, if said deceased pool member died prior to said at least one prescribed user payout age, wherein said reallocation is performed using a programmed rules based engine implemented in code stored in the memory, said rules based engine configured to apply actuarial weighting and risk distribution parameters, using age, longevity factor, and investment value data of said investment transaction product for each pool member relative to the amounts invented and ages of all pool members stored in the secure data object structure;
• automatically initiating a payout distribution to a pool member upon the occurrence of a pool member reaching their prescribed user payout age, wherein the payout includes funds associated with:
• a) a value obtained from investment of the pool member's initial funding amount;
• and
• b) a value obtained from funds reallocated to the pool member from other pool members determined to have deceased prior to their prescribed user payout age;
• wherein said payout distribution is executed via an authenticated, encrypted transaction protocol in electronic communication with at least one external financial system.