Don’t Rush In With Your Eyes Closed
Posted on June 11, 2014
If you have ever won either a lawsuit or a lottery then you are most likely familiar with annuities.
Annuities are used to settle these matters because instead of giving a substantial one-time amount, the awardee is provided with a series of payments depending on the amount of the payment sum.
There are times though when an awardee doesn’t want to wait for the payments or can’t afford to wait for years to complete the payouts. They have things to take care of now and need that money right away, not split into payments. For cases like this, the individual has an option to sell the future payouts to someone who’s willing to buy them in exchange for a lump sum payment. This type of transaction concerning the resale of annuities is referred to as secondary market annuities.
Secondary Market Annuities are referred to by various titles such as In Force Annuities, Secondary Market Income Annuities, and Structured Settlement Annuities.
No matter what they are called they are all very similar. The transaction will happen between the recipient of payouts and the buyer. No transaction will happen between the buyer and the institution that’s providing the payout. To address this legally, a lawyer and broker must be present.
One of the most common annuities is the Structured Settlement annuity in which case people who have been victorious in personal injury cases such as workplace injuries and motor vehicle accidents are likely to receive a series of payouts rather than a one-time payment. Since they are essentially receiving a stable income source, recipients don’t need to work which is considered to be beneficial for them.
There are cases though when the recipient would rather have the settlement sum in full rather than through an existing series of payouts. The recipient can choose to seek the assistance of a factoring company. The factoring firm will most likely offer to purchase remaining payouts. A discounted rate is then placed on future payouts by the factoring company and will be made available through annuity brokers. The brokers will then offer these products to potential buyers. A petition must be filed in a court of law by the seller stating that future payouts will be given to the buyer.
Selling Secondary Market Annuities can be fairly complex. As a potential buyer you are encouraged to consult with a financial planner to determine if the product is beneficial to your current situation. You don’t want to approach this in a non-chalant way and regret your decision later because it is not a good fit for your financial goals.
You want to insure that you are going into this with your eyes wide open and your brain full of knowledge and facts. This is a wonderful way to gain financial security if it is right for you and what you want to accomplish. This is not something you want to rush into without researching it first and making sure you have the broker to back you up and make sure you are well protected through the process.
If you would like to chat about how I can provide that protection for you please contact me to set up a time that works for both of us!
John Bulbrook, Bulbrook Drislane – IN-FORCE ™ Secondary Market, Finance and Investments, Secondary Market, Annuities, Fixed Term Annuities, Life Insurance, Structured Settlements, Previously Owned Annuities, Pre Owned Annuities, Immediate Annuities, Factored Structured, Settlement Secondary Market Annuity, Aftermarket annuity, Inforce fixed term annuities, Inforce fixed term annuity, Inforce annuity, Deferred Variable Annuity, Inherited Annuity, Equity Annuities, Straight Life Annuity, Non Qualified Annuity, Mutual Fund Settlement, 20 Year Annuity, 10 Year Annuity, 5 Year Annuity – Click here for his Facebook,Twitter, LinkedIn, Google Plus