Age Rating Analysis
A life contingent annuity, which provides a set level of income for the client's lifespan, is a frequently used in the resolution of personal injury cases. With such annuities, clients are assigned an Age Rating, which is used by the insurer to determine a client's life expectancy. A client's Age Rating is a critical factor in determining what a carrier is willing to provide as an income stream in return for a given premium level. Importantly, there is frequently substantial variation among annuity providers with respect to the Age Rating they assign a potential client.
As a standard practice, UFS will solicit annuitization proposals from a wide range of leading insurance carriers. These proposals contain information on the Age Rating and benefit level per premium dollar. UFS uses that information to negotiate both the most favorable age rating and level of benefit per premium dollar for the client.
In addition, we provide the attorney with a report that details and analyzes the Age Ratings assigned the client by each carrier. Many attorneys find this information invaluable as they assess the extent of a client's likely future needs and develop a settlement strategy. This report is considered to be confidential work product for purposes of litigation. In a very real sense, UFS acts as part of the litigation support team in this regard.