by John Darer® CLU ChFC MSSC CeFT RSP CLTC
A rated age is an important component of a structured settlement pricing when there are life contingent payments* such as:
- Pricing out and funding a life care plan
- Providing a backstop to a special needs trust or to an investment strategy
- Funding a Structured Medicare Set Aside Arrangement (MSA) at the maximum discount.
- Funding the temporary life elements of a New York CPLR 50A or 50B structured judgment such as future pain and suffering, or future medicals in excess of statutory thresholds.
- Funding lifetime retirement benefits or any other lifetime payment stream
- Longevity Insurance
Structured settlements are one place where acting your age (or less) results in more expensive pricing! Your good habits result in you being rewarded with a longer life, but a more expensive annuity.
To obtain the best rated age, it is important to take the time to have the structured settlement consultant review medicals before they send them to the annuity issuer. This helps to eliminate redundant reports and may identify salient points for the underwriter's consideration.
Period certain payments and guaranteed lump sum payments are not affected by a rated age. Such payments are guaranteed to be paid whether or not the payee survives the entire payment schedule.