Does It Make Sense to Structure a Very Small Case?
John Darer • March 7, 2019
When Does It Not Make Sense?
In March 2024, Metropolitan Tower Life Insurance Company (Met Tower Life) announced an increase to a minimum premium for all cases to $100,000 per case. To put things in perspective,six years earlier MetLife increased from $5,000 to $10,000!
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.
- Very young plaintiffs, where there is a long enough deferral period to make a respectable positive return to offset the small case fee.
Last update April 12, 2025
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