Settlement Services

Practical Application of the CBA

The CBA has been found to be a particularly effective means to maximize both safety and payout benefit.  In comparing the CBA with period certain annuities the payout generally favors the CBA.  However, the CBA is a rigid format which does not easily lend itself to modifications such as annual increases, deferments or periodic lump sums.  These types of modifications are best handled with the inclusion of annuity products.  Also, payment requirements which include lifetime benefits cannot be fully addressed by a CBA due to the fact that the longest bond maturity is thirty years.  In these situations a deferred lifetime annuity can be added to coincide with the maturity of the bonds held in the CBA.

Often a stand-alone, CBA is sufficient to meet the needs of the plaintiff. However, it is not uncommon to combine the advantages of both the CBA and annuity programs to provide the plaintiff with advantages afford by both types of qualified funding programs.  These scope  of benefit programs which can be designed by combining CBA’s with annuities is limited in large measure only by the imagination and creativity of the settlement specialist.

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