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February 23, 2017

Structured Settlement Rated Ages | The Good News Is That People Are Living Longer...

by John Darer  CLU ChFC MSSC RSP CLTC

AIG Structured Settlements recently announced that it was going to revise all active rated ages downward to better align its rated ages with its actual mortality experience. A February 21, 2017 company statement to its agents said that the impact of this revision will lower a rated age by no more than 5 years.

Puppy actuary
My rated age is perfectly aligned, in puppy years of course

What Are Structured Settlement Rated Ages?

A rated age is an age used in the pricing of life contingent structured settlement annuities that reflects the opinion of the annuity issuer's medical underwriter on the life expectancy of a prospective annuitant. So if a 50 year old has a rated age of 65, that simply means that the structured settlement expert can calculate the cost of funding $10,000  in monthly medical costs for the rest of the plaintiff's life based on a 65 year old's price, which will be much cheaper.  Rated ages vary from company to  company.  Some companies will not do rated ages at all.  It's important to note that the highest rated age does not necessarily result in the cheapest price.  For example. a company with better base rate may be more competitive even with a lower rate.

Period certain or guaranteed lump sum payments are not affected by a rated age.  

Is this anything to be concerned about?

It is not uncommon for an insurer to revise its underwriting in response to changing experience.The rated age action announced by AIG Structured Settlements is a responsible decision for a company that is in business to insure long term obligations. It reflects very positively on AIG's quality control. In its notice AIG reaffirmed its commitment to the structured settlement industry.

AIG Structured Settlements underwrites structured settlement annuities through two AIG subsidiaries, American General Life Insurance Company  (Est. 1925) and United States LIfe Insurance Company in the City of New York  (Est. 1850) and its annuities are available though appointed agents authorized for the structured settlement product line. United States Life is one of the few companies that will underwrite annuities to fund future damages on New York Structured Judgments.

Interesting research on mortality stats

Mortality in the United States, 2015 by Jiaquan Xu, M.D., Sherry L. Murphy, B.S., Kenneth D. Kochanek, M.A., and Elizabeth Arias, Ph.D.   NCHS Brief No. 267   December 2016

 

Posted at 12:53 AM in AIG/American General Structured Settlements, Albany New York Structured Settlements, Baltimore Structured Settlements, Bethesda Structured Settlements, Boston Structured Settlements, Bridgeport Structured Settlements, Bronx New York Structured Settlements, Brooklyn New York Structured Settlements, Buffalo New York Structured Settlements, CT Structured Settlements, Dallas Fort Worth TX Structured Settlements, Hartford CT Structured Settlements, Long Island NY Structured Settlements, Los Angeles CA Structured Settlements, Louisville Kentucky Structured Settlements, Maryland Structured Settlements, NC Structured Settlements, New Haven CT Structured Settlements, New Jersey Structured Settlements, New York City Structured Settlements, New York CPLR Article 50A or Article 50B Structured Judgment, New York Personal Injury, New York Settlement Planning, New York Structured Settlements, Newburgh Structured Settlements, News About Structured Settlements, Norwalk Structured Settlements, NYC Structured Settlements, San Diego Structured Settlements, San Francisco Structured Settlements, Santa Monica Structured Settlements, Sarasota Structured Settlements, St. Louis Structured Settlements, Stamford Structured Settlements, Staten Island Structured Settlements, Structured Annuity Company, Structured Settlement Industry News, Structured Settlement Information, Structured Settlements in Ithaca New York area, Structured Settlements in Maine, Structured Settlements in Nassau County, NY, Sumter County Structured Settlements, Syracuse Structured Settlements, Tampa Structured Settlements, Washington Structured Settlements, West Virginia Structured Settlements, Westchester Structured Settlements, White Plains Structured Settlements, Wisconsin Structured Settlements, WV Structured Settlements |

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Guide to Structured Settlements 2020

  • What is a Structured Settlement? How do I get a Structured Settlement?
    General explanation of structured settlements, including the stable guaranteed income and favorable tax benefits that give structured settlements their "juice" and a helpful introductory video featuring 2020 A.M. Best recommended structured settlement expert and Registered Settlement Planner John Darer® of 4structures.com® LLC
  • How Do Structured Settlements Work? Structured Settlement Diagram
    How structured settlements work, accompanied by 4structures.com® LLC's helpful structured settlement flow chart/diagram showing how structured settlements fit in with other settlement planning solutions.
  • Rated Ages and Structured Settlement Cost
    Rated Ages for Structured Settlement Annuities present advantages to all parties. Shift the mortality risk to a life insurance company whose business it it is to assess mortality risk to price its life insurance and annuities. Rated ages boost your structured settlement annuity benefit per premium dollar, or your yield on lifetime payments. Rated ages help to reduce the cost of funding a Medicare Set Aside arrangement where a Structured MSA, is being used { WCMSA LMSA or NFMSA].
  • Structured Settlement Annuity Companies 2020
    Which life insurance companies issue structured settlement annuities going into 2020? A list of current structured annuity issuers, the location of their home offices and their financial ratings from A.M. Best, Moodys, Fitch, Standard & Poors, links to their websites and other useful information.
  • Treasury Funded Structured Settlements
    Treasury Funded Structured Settlements are a settlement option for the most conservative using the OTHER permissible qualified funding asset under IRC 130(d), United States Treasury Bonds in addition to, or instead of, structured settlement annuities. Treasury Funded Structured Settlements can also be used to fund installment sales, also known as structured sales and other non qualified structured settlements.
  • Compare Structured Settlement IRR to Other Settlement Alternatives
    Use the Taxable Equivalent Yield chart to help compare the Internal Rate of Return (IRR) of a structured settlement to other alternative or complementary investments. Need help with the chart? Call 4structures.com® LLC at 888-325-8640
  • Structured Settlement Payments | Types of Structured Settlements
    Ways You Can Structure Your Settlement Payments. With a structured settlement you can have more than one type of payment in a single contract. Different types of structured settlement payments can be customized and combined to meet your needs on a stand-alone basis, or in conjunction with other financial products. Diversify your structured settlement, if you wish, by funding with more than one annuity issuer, with treasury funded structured settlements or even an index linked structured settlement.
  • Structured Attorney Fees for Tax Deferral for Contingency Fees
    Structured attorney fees is a financial strategy that offers a unique way to defer taxes for lawyers and law firms. Lawyers CAN structure their legal fees even if the plaintiff doesn't structure their settlement. There are multiple ways to structure your attorney fees, such as the an index linked structured settlement where payments are adjusted based on upside changes in the S&P 500 with no downside and a cap of 5%. Trial Lawyers may also use a special deferred pay/deferred compensation arrangement, if market based returns returns are desired with no cap. Plan NOW for year end! Put structured attorney fee expert John Darer® on your settlement planning team.
  • Structured Settlement Annuity Company Customer Service Phone Numbers
    Receiving structured settlement payments from your own structured settlement or inherited a structured settlement? You'll like this huge time saver. Click for a comprehensive list compiled by 4structures.com® LLC, that includes both current AND former structured settlement annuity issuers and reinsurers. If you have simple bank or beneficiary changes, or if the insurance company that issued the structured annuity has merged, sold or spun off its block of structured annuity business (e.g. Aviva, GE Capital, CNA) or changed its name and you're trying to track them down, here you go! The list is regularly updated. Last update April 2020.
  • Structured Settlement Quote Lock-Ins | What You Need To Know
    What does a Structured Settlement Lock-In Mean? How do plaintiffs, defendants and insurers benefit from a structured settlement quote lock in when finalizing a settlement? How does the defendant/insurer/court benefit from using a structured settlement lock-in? Where to be careful when using structured settlement lock ins.
  • What Are Structured Settlement Annuities?
    Structured settlement annuities are annuities that can provide one or more customized annuity payment streams in a single contract. Read about it here.

Contact Structured Settlement Expert John Darer®

About The Structured Settlement Blog

  • STRUCTURED SETTLEMENTS 4REAL® Blog Is a Popular Source of Structured Settlement News and Information, Settlement Planning News, Tax Deferral and Deferred Income Planning Solutions,
    with a stable readership that seeks credible structured settlement information and/or opinion about topical issues related to settlement planning, targeted to lawyers, injured persons and their family members, guardians, survivors, judges, magistrates, special masters, mediators, administrators, trust companies, insurance company executives and adjusters, financial advisers settlement professionals, financial professionals, insurance regulators, government leaders, federal and state law enforcement, buyers and sellers of structured settlement payment rights, the news media and other interested parties. 4structures.com LLC established the structured settlement blog in 2005 to fill a need for critical commentary in an under-served.marketplace. The John Darer® authored blog has been among the most prolific, providing fresh structured settlement, settlement planning and litigation recovery management content and commentary regularly. John Darer®, CLU ChFC MSSC CeFT® RSP CLTC, President of Stamford, CT based 4structures.com, LLC, is an experienced New York City area structured settlement expert, structured settlement broker, Certified Financial Transitionist, and Registered Settlement Planner. WHAT YOU GET here is the straight stuff with a touch of irreverence and humor. We hope you enjoy and find the content to be helpful.. Subscribe to the structured settlement blog feed, or a specific category feed through your blog reader, or through the Feedburner icon on this page. Followers of JDDarer™ on Twitter may also receive select content. Thank you for reading!

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  • "All the others that I had emailed & have seen on the net were "cash now types" & have no concern of me & just are looking for my $$$. When I came across your site & blog I realized that u are an upstanding guy & are not like others. That's why I emailed"
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  • "He is a fabulous writer who has a great passion for the structured settlement industry. I commend him on the passion he invokes when he writes on his blog listed above. That type of commitment and passion is hard to find and is rare in this world" -AC

Structured Settlement Best Practices Corner

  • New York Insurance Advertising law requires the full name of the Insurer to be listed along with the city and state of the principal office. Stating that you represent these fine companies using Insurance company logos without the preceding information are also illegal
  • When it comes to settlement documents it is the ultimate responsibility of the lawyers or claims adjusters who receive input concerning the structured settlement aspects of the documents to actually read the entire document, exercise independent thought and advise their clients properly
  • Be aware that financial advisors use of testimonials is prohibited or restricted
  • Most states require that Testimonials represent the CURRENT opinion of the person who made the testimonial. Be prepared to back it up.
  • Number of States That Prohibit Payment of QSF expenses by licensed agents and brokers
    5 Survey not yet complete.

Comments and Trackback Policy

  • Comments and Trackback Policy
    Comments to this blog are encouraged, welcome and add spice to the interactive nature of blogs. However, the unscrupulous practice by some to deliver comment spam, to connect all manner of unrelated products to structured settlements, detracts from user experience, is NOT tolerated by this author and thus necessitates the practice of comment screening.

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Helpful Structured Settlement Information is Here!

  • Learn more about structured settlements by reading structured settlement expert John Darer's blog
    Researching Structured Settlements? Check (1) in Archived Blog Posts (above left); (2) use Google search box (below); (3) visit the 4structures® website at www.4structures.com, (4) 4structures® YouTube Channel by clicking the above link, or (5) call settlement expert John Darer® at 888-325-8640, toll-free in the USA or 646-849-1588 in New York City
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    SUBSCRIBE to the dedicated RSS feed for the Structured.Settlements 4Real® blog category that interests you. For example, if you are just interested in reading about "New York Structured Settlements" you can follow that feed. Just click on the category title tag at the bottom of a post you like and then the little RSS symbol on the resulting page.You can also subscribe to the whole blog
  • The John Darer® authored Structured Settlements 4Real® blog is the most prolific structured settlement blog for over 14 years, by some distance, with over 5,130 blog posts, and counting!

Why Take a Structured Settlement?

  • A structured settlement offers guaranteed financial security to personal injury victims, wrongful death survivors and their families. A structured settlement involves a customized stream of payments, provides long-term stable tax-free income, for a period of years or a lifetime. Unlike other income annuities. a structured settlement annuity can have multiple payment streams to address multiple needs in a single contract.

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