| abstract |
The present invention relates to an increasing income financial product. According to one embodiment of the invention, each subscriber invests in a financial contractual product or program. Each subscriber designates primary and secondary beneficiaries. The subscriber has various payment plan options to fund the financial product. Those plans include (a) lump sum payment, (b) periodic payments, (c) a pledge of a subscriber's financial asset, and (d) a pledge of a subscriber's financial asset accompanied with periodic payments. The primary beneficiary is assigned, along with a number of demographically similar beneficiaries, to a certain contract group. In the event the subscriber utilizes the pledge payment plan, when the primary beneficiary dies, the pledged assets of the subscriber are placed under the control of the financial product administrator or its designee. Income is provided according to the contractual terms or parameters to surviving primary beneficiaries of the same assigned contract group on an increasing, survivorship basis until (a) all the initial primary beneficiaries die; or (b) a predetermined percentage of the primary beneficiaries die; (c) the contract expires based upon the expiration of pre-established time periods; or (d) upon any other contractually defined event. Alternatively, the increasing income may be paid to the surviving members based upon mortality tables. When the contract expires, the surviving primary beneficiaries (the percentage initially established per the financial product contract) or the designated secondary beneficiaries receive their pro rata share of the principal from the contract group. In one embodiment, the financial product is configured as a self-directed financial investment wherein the subscriber/primary beneficiary identifies the type of self directed investment structure suitable to him or her and compatible with the designated contract group. |