Abstract: A method for transferring longevity comprising: receiving an order to trade a financial instrument associated with at least one asset or liability affected by longevity risk; calculating a morbidity description for at least one age of each individual, a survivorship distribution and a mortality distribution, a net cash flow projection distribution, where each distribution value in the net cash flow projection distribution is computed as the probability-adjusted cash in-flow expected over a period, less the probability-adjusted cash out-flow expected over the same period; calculating a net present and net forward value distribution; accepting starting and ending dates over which counterparties wish to exchange the difference to provide at least one exposure period; accepting an input for computing a performance bond; receiving through a computing device, over time, updated mortality information and morbidity information; and recalculating distributions affected to provide recalculated distributions; calculatin

Abstract: A method for transferring longevity comprising: receiving an order to trade a financial instrument associated with at least one asset or liability affected by longevity risk; calculating a morbidity description for at least one age of each individual, a survivorship distribution and a mortality distribution, a net cash flow projection distribution, where each distribution value in the net cash flow projection distribution is computed as the probability-adjusted cash in-flow expected over a period, less the probability-adjusted cash out-flow expected over the same period; calculating a net present and net forward value distribution; accepting starting and ending dates over which counterparties wish to exchange the difference to provide at least one exposure period; accepting an input for computing a performance bond; receiving through a computing device, over time, updated mortality information and morbidity information; and recalculating distributions affected to provide recalculated distributions; calculatin

Abstract: A system and method for transferring longevity risk is disclosed. According to an example of the disclosure, a trading system receives an order to trade a financial instrument in which counterparties agree to exchange, for a predetermined period of time, a difference between an expected and actual cash flow stream associated with one or more assets or liabilities affected by mortality-based longevity risk, wherein the predetermined period of time includes one or more calculation periods that each last less than a term of the one or more assets or liabilities, receives updated mortality information underlying the longevity risk, and calculates the difference to be exchanged for each of the one or more calculation periods.

Abstract: A computer implemented method of valuing and modeling an investment comprising the steps of: providing at least one investment for consideration comprised of at least one future cash flow; creating at least one probability distribution for each future cash flow, by a user, each probability distribution to represent uncertainty of magnitude at at least one particular time to provide at least one magnitude distribution; creating at least one probability distribution for each future cash flow, by a user, each probability distribution to represent uncertainty of timing at at least one particular magnitude to provide at least one timing distribution; combining the magnitude distributions and at least one timing distribution into at least one joint-probability distribution function; and converting at least one joint-probability distribution function to generate a two-dimensional net present value probability distribution.

Abstract: A system and method for transferring longevity risk is disclosed. According to an example of the disclosure, a trading system receives an order to trade a financial instrument in which counterparties agree to exchange, for a predetermined period of time, a difference between an expected and actual cash flow stream associated with one or more assets or liabilities affected by mortality-based longevity risk, wherein the predetermined period of time includes one or more calculation periods that each last less than a term of the one or more assets or liabilities, receives updated mortality information underlying the longevity risk, and calculates the difference to be exchanged for each of the one or more calculation periods.

Abstract: A system and method of providing care annuities that guarantee provision of actual, appropriate custodial care to individuals. The care annuities are priced based on an estimated cost of providing anticipated, appropriate custodial care for an anticipated time period, such as a Medicaid lookback time. Some or all of the calculations involved in pricing and providing the care annuity, including estimating the type, length and cost of custodial care appropriate for an individual, may be made using a suitably programmed computer. A suitably priced care annuity will guarantee the individual actual, appropriate custodial care for as long as actually required and make business sense to the seller of the annuity. The risk of a possible difference between the estimated and actual cost of providing care may be factored into the price in a statistical manner so that the risk can be spread over a pool of care annuities.