by John Darer® CLU ChFC MSSC RSP CLTC
Allstate had a peculiar way of issuing structured settlement annuity contracts if you had a payments for life with a period certain. You would actually be issued TWO contracts, one for the period certain and lump sums and another for the life contingent piece
Say what?
Example
Say your structured settlement was due to make the following payments
- Beginning 04/01/1999, $5,000 per month for life with 20 years certain and increasing at 3 % compounded annually
- $100,000 guaranteed lump sum on 4/15/2016
- $100.000 guaranteed lump sum on 4/15/2018
The two contracts will likely have the same number but be followed by the letter A or B., with one promising to pay the certain/guaranteed payments and the other promising to pay the lifetime payments. The lifetime piece, in this example would begin 04/01/2019 would start at the an inflated monthly amount (3% compounded for 20 years)
Allstate’s unique approach to issuing “A and B” structured settlement annuity contracts, where one concluded as the other began, necessitated a dependable data entry professional to ensure a smooth and uninterrupted transition.
In a recent case we discovered, 20 years after the fact (the annuities were written by another structured settlement broker), a situation where there was a data entry error. Fortunately the error was corrected, but not without a little “agita”.
Since Allstate discontinued issuing new structured settlements in early 2013, Allstate has outsourced certain customer service functions to a call center in the Philippines and upon my personal observation and that of another respected member of the profession, these people are woefully uninformed and may not know the history.
Allstate has been in business since 1931. There was no reason to believe that Allstate Life Insurance Company will not honor their contactual obligations. This was simply an adminsitrative issue.
- If you are a payee under an Allstate Life structured settlement contract, however, or the guardian or conservator for a payee, please contact Allstate Life to verify your benefits as the end of the guarantee period approaches and when life contingent benefits are scheduled to begin. Be sure to have the contract numbers handy.
- If you are divorced spouse of payee under an Allstate Life structured settlement annuity that has been split and you are entitled to lifetime payments under a joint and survivor annuity, you should contact Allstate to verify at the end of the certain period as well.
- While you’re at it, make sure beneficiary designations are up to date, if there has been a change in your life (marriage, birth, death, change of gender, change of heart)
Related Reading
Allstate stopped selling new structuredsettlement annuities in 2013, The two underwriting companies were divested separately. Allstate Life became Everlake LIfe Insurance Company. See Everlake Life Structured Settlements Call 833-879-0775
Allstate Life Insurance Company of New Yor became Wilton Re Life Assurance Company of New York. Call Wilton Re Life Insurance Company of New York 800-262-1028
Allstate Life Structured Settlements | What You Need To Know