Without a backstop on a baseball field wayward 90 plus mile per hour fastballs and foul tips would keep on going and going or they might hurt someone. Without a backstop potential "wild pitches" such as medical expense spikes, wayward spending, less than expected investment results and better than expected longevity, have the potential to erode the financial security of personal injury plaintiffs.
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A "structured annuity backstop" is employed as a conservation strategy on "the ballfield" of settlement planning when there is high quantum and wayward mortality assessment (rated ages) among annuity issuers. Generally a deferred start date structured annuity is coupled with a large cash seed into a settlement preservation, settlement conservation, or special needs trust, as a way of "hemming in" the long term risk of dissipation.
The longer the deferred start date employed, the more advantage can be taken of lower rated age pricing because the annuity approaches pure insurance. The strategy also mitigates the cost loading effect of a cost of living adjustment (COLA) on the structured annuity.********************
A life annuity is an insurance product that contractually guarantees income protection for how ever long "your ball" happens to roll.
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