Learn About IN-FORCE™ Part 2
Posted on August 23, 2012
BulbrookDrislane, offers the payment rights to these annuities, called IN-FORCE™ fixed term annuities, to buyers like you. Typically, the IN-FORCE™ fixed term annuity payments are made regardless of whether or not the existing Annuitant or the buyer is alive, meaning these payments are not contingent on any individuals life.
The rate of return for each IN-FORCE™ fixed term annuity is determined by the current market at the time which includes what a buyer is prepared to accept as a return on his or her purchase and the IN-FORCE™ fixed term annuity attributes such as the number of years for the payout and the insurance companies financial rating.
The rate of return for each IN-FORCE™ fixed term annuity is represented as an “effective rate,” meaning it is compounded monthly to generate an annual effective rate based on a 365 day year. This is standard practice in the annuity industry. Interest rates are recorded to an accuracy of two decimal places (for example 7.00%).
Payments are made whether the existing annuitant lives or dies during the period that the payments are due. Upon the death of the buyer, the payments continue to the joint owners or the estate of the buyer as designated.
Payments are typically made by a check mailed to your designated address or by direct deposit into your bank account. The insurance company usually determines the method of payment. As the buyer you may change the address for payment or bank account designation at any time by informing the insurance company directly.
Bulbrook/Drislane is responsible for the overall business and operation of the IN-FORCE™ fixed term annuity transfer and sale process. This includes:
- Entering into a sale agreement with the existing annuitant to acquire the payment rights to each annuity in return for an agreed upon present value cash amount.
- Finding a buyer to acquire the payment rights to the annuity at an agreed upon rate of return and corresponding price.
- Completing the annuity transfer process, including obtaining a transfer court order, in accordance with U.S. state and federal laws.
- Overseeing the transfer due diligence process as set out in the Sale and Assignment Agreement with the Existing annuitant and the Receivable Purchase Agreement with the buyer.
- Safeguarnding the buyers funds until the transaction closing.
- Closing the purchase of annuity payment righs with the buyer and providing a closing book containing all documents set forth in the receivable purchase agreement.
John M. Bulbrook is founder and CEO of Bulbrook/Drislane Brokerage, a national distributor of financial products headquartered in the Boston area. For more than 30 years John has helped insurance agents, financial planners and brokers find the right insurance and annuity products to meet the client’s needs. In the process, he has earned a reputation throughout the industry for his integrity, resourcefulness and hard work, all carried out in good humor.