Defense brokers have no reason to be concerned with issues that affect professional liability exposure by devoting significant time to obtaining the most competitive payout from the highest rated carriers.
The difference means more money for the claimant.
ACTUAL CASE
Benefits for 12-year-old female at a cost of $625,000:
* Monthly benefits of $1,500 per month for 7 years certain
* Monthly benefits of $2,500 per month for 7 years certain
* College Plan: $25,000 payable annually for 7 years certain
* $24,000 payable at age 16
* $29,000 payable at age 21
* $100,000 payable at age 30
* $150,000 payable at age 35
* $200,000 payable at age 40
* $250,000 payable at age 45
* $300,000 payable at age 50
* Beginning at age 25, $4,033.74 payable monthly for 30 years certain and life, compounding annually at 4%.
(Defendant's carrier offered lifetime payments of $3,745.44, a difference of $194,031 in guaranteed payouts and $1,064,751 if she lives to "life expectancy").
There are numerous pricing breaks on the cost of structured settlements, daily rates, jumbo case discounts, and age-ratings that leverage benefits. These can be used by the defense broker to save their client money instead of increasing benefits for the claimant.
The defense will not offer these important services that also affect the client's settlement and well being:
* coordinate the settlement with public assistance programs (i.e. Special Needs Trust)
* split-fund the structure and/or offer alternative investment products for risk diversification
* procure "secured creditor" status for the client from the carriers
* make meaningful distributions that meet the needs outlined in the Life Care Plan using actual medical growth rates in each category.
* obtain medical age ratings from all carriers
* secure ability to liquidate future payments upon death of beneficiary