Annuities Blog

According to a panel of experts at a MarketWatch Retirement Adviser event in New York, you may be making some key mistakes when you are evaluating annuities that you don’t even realize. Mistake #1: Comparisons that don’t add up One mistake is to assess the value of a variable deferred annuity as though all of its costs are pure overhead. That can lead to viewing annuities as unreasonably expensive.  Rather, those costs are charges for the transfer of risk. Any insurance product out there on average will not pay off. If buyers of any insurance product profit from purchasing it, ...
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Secondary market annuities are a fairly new area on the financial landscape. However, a recent LIMRA study found that 61 percent of annuity consumers conduct their research online. What does this mean?  That buyers all across the nation find out about secondary market annuities online so they know what to ask when they look for someone to help them with the transaction. The term secondary market annuity refers to existing, in force period certain payment streams. The term secondary market is used to differentiate existing payment streams from  newly issued period certain annuities. While there are payments in the market ...
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When dealing with secondary market annuities you want to use an intermediary to ensure that compliance is handled in the correct way. Secondary market annuities can/will unravel if applicable federal and state laws governing the underlying structured settlement factoring transactions have not been complied with. This intermediary can research to make sure that there were no bribes paid to the seller in any way.  They will know all the background of the structured settlement that you would not know. Often, people don’t really understand exactly what it is they are buying when purchasing structured settlement payment rights.   That being said, ...
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by Carolyn Ellis Ms. Ellis is Features Editor for LIFE&Health Advisor. Connect with her by e-mail: cellis@lifehealth.com  John Bulbrook is CEO of Bulbrook/Drislane Brokerage, a Wellesley, MA., wholesaler of life and annuity products. We talked with John about secondary market annuities, new to the retail arena for the safe money portion of a client’s portfolio. L&HA: What are secondary market annuities? JB: A good analogy is the New York Stock Exchange, a secondary market where you are buying stocks from somebody else rather than directly from, let’s say, Apple Computer. In the case of a secondary market annuity, rather than buying ...
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When you buy a secondary market annuity, you are buying the rights to contractually guaranteed payments to you, and the issuing insurance company retains full ownership of the annuity. In order for you to buy the rights to the payments, a judge has to approve this contractual change of annuity benefits.  The issuing insurance company has to approve the transaction also since they are going to own the policy, and are agreeing to pay the benefits to you instead of the previous person receiving the payments. The process to finalize the purchase of a secondary market annuity can take as ...
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As the year comes to a close, it is time for you to take a look at the financial choices you have made and see if they are still working for you in light of any life changes you have had. Did you know that annuities add value in addition to supplementing your retirement income?  They help you prepare for the future and what lies ahead which in turn provides you with peace of mind when unexpected situations arise. There is an option of having your annuity transfer to a nursing home or disability center if you ever need it ...
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You have worked hard through your lifetime building up assets. Now you need to take precautions to protect those assets. If you are considering purchasing a Pre-Owned Annuity™ you need to find one that meets your needs. Your financial situation could change over time, so it is important that you review and understand contracts to decide if they are still the right fit for your situation. Here are 10 tips you need to be aware of when looking to purchase a Secondary market Annuity (Pre-Owned Annuity™) 1. Can potentially provide above average returns for the fixed income portion of a ...
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Depending on your financial situation, health and goals, a Secondary Market Payment may be an appropriate addition to your financial plan. When you begin your investigation into this avenue there are some questions that you should be sure to ask your adviser. 1.)   Is this purchase right for me? 2.)   What are the benefits of purchasing a Secondary Market Payment? 3.)   Can I sell the payment stream at a later date? 4.)   What are the risks? 5.)   How do I become a Buyer? 6.)   What are the tax considerations? 7.)   Who makes payments? 8.) ...
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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 ...
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When you are considering purchasing an annuity, you want to be sure that you understand your rights as a senior citizen. An annuity is one type of insurance product. Being informed of your rights can help you to avoid being the victim of scams. It helps you to make educated decisions for yourself and your family. All insurers, brokers, agents and others engaged in the transaction of insurance owe any prospects 65 years of age or older, a duty of honesty, good faith, and fair dealing. Here are some brief explanations of the types of annuities available: Life Annuity - ...
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