Patent ID: 8533080

Claim:
A computerized method of providing an annuity having a guarantee period for the life of an annuitant and a liquidity option comprising: obtaining information useful for issuing an annuity from an individual; and electronically computing, using a processing device, an annuity variable selected from the group consisting of an annuity premium and future income payments, the annuity variable computed based at least partially on the information obtained from the individual, wherein the liquidity option allows a holder of the liquidity option to exercise the liquidity option and to convert therewith a portion of a value of the annuity, into a liquid asset for distribution to the holder of the liquidity option; wherein the liquidity option allows the holder of the liquidity option to exercise the liquidity option at one of a fifth, a tenth, and a fifteenth anniversary of a commencement date for the holder to receive income payments; wherein the liquidity option allows the holder of the liquidity option to exercise the liquidity option for a limited number of times after the annuity payments begin, wherein the limited number of time comprises once or twice; wherein the liquidity option allows the holder of the liquidity option to convert a portion of the value of the annuity into the liquid asset, the conversion comprising a lump sum distribution of up to one of: 30% of the commuted value of the annuity computed based at least in part on the present value, at the time of the conversion, of future income payments for the life of the annuitant, and an advance of six months of the future income payments; and wherein future income payments due to the holder of the liquidity option subsequent to the distribution cease for a period of time to account for the distribution of the future income payments.