Millenium Settlement Consulting

Substandard Age Rating

Lower Annuity Premium; Higher Monthly Benefits

A “substandard age rating,” or “rated age,” is a life expectancy adjusted age used to calculate the cost of a structured settlement. A rated age means that an annuity issuer has decided an annuitant’s life expectancy is less than normal, or the “standard” life expectancy. The shortened life expectancy results in lower annuity premium when compared to a premium for a standard life for the same benefit stream. Accordingly, the plaintiff can enjoy higher monthly benefits for the same premium.

How are rated ages obtained?

A structured settlement consultant obtains rated ages by sending the plaintiff’s medical records to the life insurance companies that are in the structured settlement market. A life company physician or medical underwriter determines the rated age after reviewing the records provided to them.

If the claimant’s doctor does not comment on reduced life expectancy or states there is no reduced life expectancy, does that mean there will be no rated age?

Although what the doctor says carries weight, the ultimate decision on whether to issue a rated age rests with the life insurance company. In most cases, the life insurance company will issue a rated age if certain medical conditions are present.

What medical conditions or habits are likely to result in age adjustments?*

  • Heart problems
  • Pulmonary problems
  • Diabetes
  • Cancer
  • Heart problems
  • Quadriplegia or paraplegia
  • Chronic Pain Syndrome
  • Psychiatric conditions
  • Drug or alcohol abuse
  • Smoking

*List not exhaustive. Please Click Here For More Information

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