Secondary Market Structured Settlements
Individuals
involved in legal claims for personal injury often accept a structured
settlement in which they receive regular, fixed payments over a set
period of years and/or lump sums at stipulated times from an annuity. As
circumstances change, the annuitants may find that they need
cash now instead of payments later. Using the services of a factoring
company, they sell future payments at a discount for cash. Financial Partners, in turn, offers the payment rights to these annuities, called Secondary Market Structured Settlements,
to buyers, who invest in structured settlement. The purchase process
can take 30 to 90 days, and requires that the individual selling the
payments receive approval to sell from a court of competent jurisdiction
(even if it was an out-of-court settlement!) for a change in the terms
of their settlement.
The future income
stream is generally a fixed, definite payment contract. It may include
lump sums, annual increases, deferral periods, or it may be contingent
on the lifespan of the seller. Typically, the Secondary Market
Structured Settlement payments are made regardless of whether or not the
existing annuitant or the buyer is alive, meaning these payments are
not contingent on any individual’s life.
- Think you may sell your structured settlement payments? Have you considered...?
- Are you looking for contact information and a list of structured settlement companies? We have it.
Second Market Annuities
Sometimes annuitants can
elect to sell their future payments from an existing annuity income
stream, either from an Immediate Annuity, a Factored Structured
Settlement, or a Lottery Prize Payout contract to someone else in
exchange for a lump sum payment today. The "resale" of these annuities
are Secondary Market Annuities or factored structured settlements.
Yields on Secondary Market
Annuities are higher simply because the seller of the payment stream is
willing to sell at a discount for cash today. Clients benefit from that
discount and receive a higher yield on the cash flow compared to
comparable annuity products available in the open markets. In contrast
to variable annuities and fixed indexed annuities, secondary market
annuities have no fees or ongoing costs other than account servicing and
IRA costs if applicable. The purchase price for a secondary market
annuity includes all legal review, closing costs, and transaction
costs. There is no annual cost, with the sole exception of nominal
account servicing and costs to administer your IRA if applicable.