Does It Make Sense to Structure a Very Small Case?

Metropolitan Tower Life Insurance Company (Met Tower Life)  announced that it is increasing the minimum
premium for allcases  from $5,000 per case to $10,000 per case, effective  Friday, March 15, 2019.  Note that per case means a settlement involving
one or more claimants/payees.).  The move by Metropolitan Tower LIfe leaves USAA Life Insurance Company as the only structured annuity issuing company that will write a $5,000 case and that $5,000 could be two kids with $2,500 structures!Does a $5,000 structured Settlement Make Financial Sense?Small case policy fee, taken together with a qualified assignment fee, which with some companies could be as high as $750, means that the total fees could end up  totaling more than $1,000,  thus representing more than 20% of the cost of the structure.  The only time it really makes financial sense is where there is a young child where there is a long enough deferral period before a payment is made.When Would it Be Worth Looking at a Small Case Structured Settlement? Concerns about a child’s financial maturity at age 18.Where there is a long enough deferral period to make a respectable positive return.

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