Megan Alexander was injuried in an auto accident on December 31, 2019. She has been deemed by medical and vocational experts to be completely disabled from her ability to complete any kind of employment function. As of the date of her injury, she was earning an annual salary of $100,000 and was scheduled to receive a raise of 2.50%, starting on Janaury 1, 2020. The total healthcare cost paid by the employer is $12,000 in 2019 and is expected to rise 4%, starting January 1, 2020.

The insurance company has agreed to compensate her for lost wages and benefits for the year 2020, with one payment each year on the final day of the year (December 31). Her company encourages retirement no later than a persons 65th birthday and Megan planned to retire on her 65th birthday, January 1, 2045. There are no lost pension benefits nor lost household services.

The settlement agreement requires that the insurance company place the present value of lost wages and benefits into a trust for distribution at the end of the year.

Other important facts and information are as follows:

Use the following template to estimate the Present Value of Future Loss of Income and Benefits:

Economic Damages Assumptions for Megan Alexander Name of Injured: Megan Alexander Date of Birth: 1/1/1980 Sex: Female Ethnicity: Hispanic Marital status: Never Married Children: None Age/Date of Injury: 40 12/31/2019 Age/Date of Planned Retirement: 65.00 Years 1/1/2045 Age/Life Expectancy: 75.9 Years 11/16/2055 Annual Amounts: Current Income $100,000 Mitigating Income Current Healthcare $12,000 Taxes: None Risk of Unemployment: 2.00% Wage Growth Rate: 2.50% Health Care Growth Rate: 4.00% Discount Rate (U.S. Treasury website): 20 Years - Future Loss of Income 3.00% So 40 National Vital statistics Data are as follows: Source: National Vital Statistics Volume 66, No. 4, August 2017 Table 12. Hispanic Females Age Number Surviving to Age X Age Number Surviving to Age X Age Number Surviving to Age X 98359 97104 60 94063 98281 96898 93591 98197 96675 93076 98105 96432 63 92518 98003 96169 91922 97889 95885 91292 97762 95578 66 90626 97621 95246 67 89919 97465 94886 68 89166 97292 94493 69 88358 62 44 65 99 (b) (g) (h) Estimate of Megan Alexander Income (Loss) (a) DOB 1/1/1980 2.50% Year End % Age Projected Hourly Year Wages 12/31/2019 Injury 40.00 $100,000 1.00 1.00 1.00 (c) 7.65% Loss FICA (d) 4.00% Lost Health Care $12.000 (e) 2.00% Risk of Unemployment (1) (1) 3.00% Discount Factor P.V. Income Loss Loss before P(Survival) and Discounting Number Alive, Vital Stats Probability (Survival) 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Present Value of Future Loss of Income & Benefits Economic Damages Assumptions for Megan Alexander Name of Injured: Megan Alexander Date of Birth: 1/1/1980 Sex: Female Ethnicity: Hispanic Marital status: Never Married Children: None Age/Date of Injury: 40 12/31/2019 Age/Date of Planned Retirement: 65.00 Years 1/1/2045 Age/Life Expectancy: 75.9 Years 11/16/2055 Annual Amounts: Current Income $100,000 Mitigating Income Current Healthcare $12,000 Taxes: None Risk of Unemployment: 2.00% Wage Growth Rate: 2.50% Health Care Growth Rate: 4.00% Discount Rate (U.S. Treasury website): 20 Years - Future Loss of Income 3.00% So 40 National Vital statistics Data are as follows: Source: National Vital Statistics Volume 66, No. 4, August 2017 Table 12. Hispanic Females Age Number Surviving to Age X Age Number Surviving to Age X Age Number Surviving to Age X 98359 97104 60 94063 98281 96898 93591 98197 96675 93076 98105 96432 63 92518 98003 96169 91922 97889 95885 91292 97762 95578 66 90626 97621 95246 67 89919 97465 94886 68 89166 97292 94493 69 88358 62 44 65 99 (b) (g) (h) Estimate of Megan Alexander Income (Loss) (a) DOB 1/1/1980 2.50% Year End % Age Projected Hourly Year Wages 12/31/2019 Injury 40.00 $100,000 1.00 1.00 1.00 (c) 7.65% Loss FICA (d) 4.00% Lost Health Care $12.000 (e) 2.00% Risk of Unemployment (1) (1) 3.00% Discount Factor P.V. Income Loss Loss before P(Survival) and Discounting Number Alive, Vital Stats Probability (Survival) 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Present Value of Future Loss of Income & Benefits