Illinois PTD case study
A long-term indemnity obligation, viewed as an executive decision.
This client comparison placed the existing obligation, modeled reserve and two transfer alternatives on one page. The figures are specific to this file and pricing date.
The comparison
The selected outcome
The client selected the life-only alternative. On the assumptions shown, the cost was $73,000 below the modeled reserve and $375,000 below estimated future payments. Covered future check processing ended under the arrangement.
Why alternatives matter
A life-only design can produce the lowest initial cost. A reversionary-interest design may return qualifying unused value when a covered benefit ends earlier than projected. Showing both prevents the decision from becoming a premium-only comparison.
Important limitation
This example is not a promise of reserve reduction or savings. Results depend on the claimant facts, jurisdiction, benefit terms, pricing, documentation and the organization’s accounting and reserve practices.
Start with one de-identified file