Patent ID: 8234132

Claim:
A computerized method for providing longevity insurance comprising: electronically receiving information useful for issuing a first insurance product and longevity insurance in the form of a provision of the first insurance product for an individual, the longevity insurance provision providing deferred income payments for a period of time in a second stage of retirement beginning at a predetermined date that is after an individual's anticipated retirement date, wherein the predetermined date is on or after the individual's eightieth birthday, the first insurance product providing income payments for a period of time in a first stage of retirement up to the predetermined date, the longevity insurance provision limited to individuals having a maximum age at issuance of the first insurance product; and electronically determining, via a processing device, one of a premium and an income payment for the individual for the longevity insurance provision, the premium or income payment computed at least in part based on: IncomePurchased t = NP t ( 1 + i ) - d 365 × ( ( m - t ) ❘ ⁢ ( a ′ ) x + t 12 ) wherein, NP t is a net premium paid into contract at time t: t is a number of complete months since issue date; i is an annual crediting rate: d is a number of days between a calculation date and an income start date; m is a number of complete months between an issue date and the income start date; and a′ is an annuity factor.