Previously Owned Annuities Pros and Cons

Posted on November 27, 2013

Previously Owned annuities have several positive attributes in common that make them currently in high demand:

1.)         High Yields that are typically 4.0-7.0%

2.)         Payment streams guaranteed by highly rated insurance companies

3.)         Court order process protects buyer and seller

4.)         Issuers regulated by State Insurance Commissions

5.)         Fixed/reliable income streams

6.)         Diversification for portfolios of sophisticated investors

7.)         Non market correlated asset

8.)         IRA compatibility

9.)         Estate transfer to heirs

10.)     20 plus years of successful transaction history

There are also cons to this though that you also need to be aware of…

1.)         Limited liquidity selling your payment stream prior to maturity could result in loss

2.)         Court order process should be monitored by a expert attorney

3.)         Some of the best ones never reach certain internet/retail lists

4.)         Industry is controlled by a few power players that cater to institutional investors

5.)         Contracts require 10% escrow to secure future ownership during the court order process tying up some of your money at low or no interest for up to 90 days

6.)         Approximately 20% of initiated contracts get rejected by the court and you get your escrow back to start over

7.)         Life contingent contracts can end abruptly with an insurance company paying back your principal and yield early upon the death of the annuitant.

8.)         Not FDIC insured

I hope this helps you to understand both the positive and negative points of previously owned annuities. 

The biggest question most individual investors have is how to get started without making a mistake they will regret.  The key is using an expert that specializes in this field.

 “Get a list of the hottest deals offering high rates of return with safety and security.”

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


No Replies to "Previously Owned Annuities Pros and Cons"